International tensions take center stage in a light-data week

Part 6
International tensions take center stage in a light-data week (Part 6 of 7)

Investors should watch this week’s FOMC and homebuilder earnings

FOMC meeting upcoming

After last week’s dearth of economic data, we get a bit more news this week. The highlight of the week will be the FOMC meeting, and there will be some very important real estate related numbers as well. Finally, we’ll hear from builders Lennar (LEN) and KB Home (KBH), which should give us a first peek at the spring selling season.

Housing startsEnlarge Graph

Economic data this week

Monday, March 17

  • Industrial production
  • Capacity utilization
  • Manufacturing production
  • NAHB Housing Market Index

Tuesday, March 18

  • Consumer Price Index
  • Housing starts
  • Building permits

Wednesday, March 19

  • MBA Mortgage Applications
  • FOMC rate decision
  • Pace of asset purchases

Thursday, March 20

  • Initial jobless claims
  • Philly Fed
  • Existing home sales
  • Index of Leading Economic Indicators

Friday, March 21

  • No data

Earnings reports this week

Wednesday, March 19

  • KB Home (KBH)

Thursday, March 20

  • Lennar (LEN)
  • New Residential Realty Trust (NRZ)

Impact on mortgage REITs

Mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), and MFA Financial (MFA) are highly interest rate–sensitive. Tapering seems to be on autopilot at this point, so they will parse the language of the FOMC release to see if the Fed is backing off its target unemployment rate for raising interest rates.

Impact on homebuilders

There will be lots of important data this week for builders. We’ll get four critical economic reports—the NAHB Sentiment Index, housing starts, building permits, and existing home sales. Finally, we’ll also get earnings from KB Home and Lennar. This is a big week for homebuilders.

Impact on commercial REITs

There’s not a lot of data this week for the commercial REITs to focus on. If anything, they’ll watch the industrial data for general economic strength and will pay attention to what the FOMC has to say.

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