By Evelina M. Tainer, Chief Economist, Econoday
September 26, 2003

Economic indicators told the same old story: a strong housing market coupled with a sluggish manufacturing sector. Home sales surged in August while durable goods orders fell. Declining Treasury yields on 10-year notes are helping to reduce mortgage rates again. The average 30-year mortgage rate fell back below 6 percent in the week ended September 26. Market players were stunned by an OPEC announcement that oil production would be scaled back in October, though it remains to be seen whether non-OPEC oil-producing countries will go along with the production cuts. But if cuts are substantial, it could raise energy prices and hamper recoveries - in the U.S. and abroad.