Here Comes New Homes Sales...

New home sales for August are out at 10 a.m. ET.

Economists polled by Bloomberg are looking for new home sales to rise 6.6% month-over-month to an annualized rate of 420,000.

This compares with a surprise 13.4% fall to an annualized rate of 314,000 in July. There was also a huge downward revision to June's number.

New home sales have been impacted by a surge in mortgage rates, with the 30-year rate up 4.5%, according to the Freddie Mac's September 19 primary mortgage market survey.

We've also seen homebuilder confidence stall in September at 58 and housing starts missed expectations.

Some have noted tha last month's disappointing new homes sales report is one of the reasons that the Fed delayed tapering its $85 billion monthly asset purchase program.