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What to watch for in real estate this week: builder earnings, MBA mortgage apps

10 year bond yield - LTEnlarge GraphAfter 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

  • 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

  • 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.

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.