What to watch for in real estate this week: builder earnings, MBA mortgage apps
After a relatively benign week, bonds have a lot of data to navigate
Bonds rallied last week after relatively dovish comments by Ben Bernanke. While we don’t have much in the way of market-moving economic data this week, earnings season if now in full swing.
Economic data this week
Monday, July 22nd
(Read more: Recommendation: Think about upcoming mortgage REIT earnings (Part 3))
Chicago Fed National Activity Index
Existing Home Sales
Tuesday, July 23rd
FHFA Home Price Index
Richmond Fed
Wednesday, July 24th
MBA Mortgage Applications
New Home Sales
Markit Preliminary PMI
Thursday, July 25th
Initial Jobless Claims
Durable Goods
Bloomberg Consumer Comfort
Kansas City Fed
Friday, July 26th
(Read more: Bernanke’s comments send mortgage rates screaming higher)
University of Michigan Consumer Confidence
Earnings Releases this week:
Wednesday, July 24th
Hatteras Financial (HTS)
Thursday, July 25th
PulteGroup (PHM)
D.R. Horton (DHI)
Standard Pacific (SPF)
Implications for mortgage REITs
For REITs like Annaly (NLY) and American Capital (AGNC), they simply need some stability in the bond market. There are probably no economic releases next week that will move the bond market. REITs will take note of Hatteras’ numbers, but this is quiet week for the most part.
(Read more: Recommendation: Think about upcoming mortgage REIT earnings (Part 4))
Implications for home builders
The data next week is very relevant to the homebuilders. On Tuesday, we get Existing Home Sales, which gives information about the general health of the real estate market, and on Wed we get New Home Sales. Durable Goods and Michigan Confidence will be important as well. The most important day is Thursday, when we get earnings from PulteGroup, D.R. Horton, and Standard Pacific. While Lennar and KB Home both reported good numbers already they only had one month of increasing interest rates because their quarter ended May 30. Analysts will be watching growth rates and also listening for anecdotal evidence about traffic during the conference calls.
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