Higher mortgage rates already hurting the economy?

The July durable goods report came out today and it was bad.  It not only missed expectations but for the first time in 12 months posted it’s biggest drop.  Not a good sign for an economy barely holding on to a 1-1.5% GDP growth number.  Have mortgage rates started to hurt other areas of the economy?  Not necessarily at this point….still too early. However borrowing costs from mortgages, to US debt to corporate debt have all gone up and this great move could already be causing a slow down in other areas of the economy.  It doesn’t take more than a 1/2 of a brain to know we are barely holding on as an economy and with higher rates across the board, declining incomes and talk of “the taper” it is no surprise that we are seeing some slow down in the various data reports over the last few weeks.  The weekly jobs report this week should be interesting and if it comes in much worse than expectations then you might start to see bond investors jump back in the market.  Mortgage rates would benefit from new money entering the market.  Refinance applications may start to pick up as interest rates fall.