Real estate next week: FOMC minutes and existing home sales are key

After a tumultuous couple of weeks, bonds get a break

This past week was a short week with the bond market closed for Veteran’s Day. The stock market was still open, however. This week is also not a heavy week data-wise or earnings-wise.

Existing Home SalesEnlarge Graph

Economic data this week

Monday, November 18

  • Treasury International Capital Flows
  • NAHB Housing Market Index

Tuesday, November 19

  • Employment Cost Index

Wednesday, November 20

  • MBA Mortgage Applications
  • Retail sales
  • Consumer Price Index
  • Existing home sales
  • Business inventories
  • October FOMC meeting minutes

Thursday, November 21

  • Initial jobless claims
  • Producer Price Index
  • Bloomberg Consumer Comfort
  • Markit PMI
  • Philly Fed

Friday, November 22

  • JOLT job openings
  • Kansas City Fed

Earnings reports this week

  • No real estate–related earnings

Impact on mortgage REITs

Mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), and MFA Financial (MFA) are highly interest rate–sensitive. None of the economic releases will be market-moving (or at least none should be). For the REITs, the most interesting thing next week will be the minutes from the October FOMC meeting.

Impact on homebuilders

Homebuilders like Lennar (LEN) and KB Home (KBH) are heading into a seasonally weak period, so they’re in inventory reduction mode. We will hear from home improvement retailers Home Depot and Lowe’s, which will be a data point for the builders, but won’t drive their stocks. Existing home sales will be of interest, simply because new homes compete with existing homes. But otherwise, it will be a dull week ahead of the Thanksgiving week holidays.