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Overview: Realist Real Estate Roundup, July 7–11

Overview: Realist Real Estate Roundup, July 7–11 (Part 1 of 6)

Must-know: What to watch for in real estate this week

What to watch for in real estate this week

Next week begins the deluge of heavyweights announcing earnings. We’ll hear from General Electric (or GE), Google (GOOG), and the biggest banks. Also, we have a lot of important industrial and housing data, with industrial production, capacity utilization, housing starts, and building permits.

Housing startsEnlarge Graph

Economic data this week

Monday, July 14

  • No economic data

Tuesday, July 15

  • Empire Manufacturing
  • Retail Sales
  • Import Prices
  • Business Inventories

Wednesday, July 16

  • MBA Mortgage Applications
  • Producer Price Index
  • TIC flows
  • Industrial Production
  • Capacity Utilization
  • Manufacturing Production
  • NAHB Housing Market Index

Thursday, July 17

  • Initial jobless claims
  • Bloomberg Consumer Comfort
  • Housing Starts
  • Building Permits
  • Philly Fed

Friday, July 18

  • University of Michigan Consumer Confidence
  • Index of Leading Economic Indicators

Earnings reports this week

Monday, July 14

  • Citigroup (or C)

Tuesday, July 15

  • JPMorgan Chase (or JPM)

Wednesday, July 16

  • MGIC Investment Corp (or MGIC)
  • Bank of America (or BAC)
  • US Bancorp (or USB)

Thursday, July 17

  • Fifth Third Bancorp (or FITB)

Impact on mortgage REITs

Mortgage real estate investment trusts (or REITs) like American Capital Agency (AGNC) and Annaly (NLY) will focus on data that will move the bond market. The economic data this week probably won’t be market moving for the big REITs. However, mortgage REITS that focus on mortgage origination like PennyMac (PMT) and Redwood Trust (RWT) will focus intently on what the big banks have to say about mortgage origination. Their margins will be particularly interesting.

Impact on homebuilders

Builders will focus on the housing starts and building permits data. The NAHB Housing Market Index will also be of interest. While these are backward-looking indicators, they’ll speak to the general health of the housing market.

Impact on commercial REITs

The most important data for commercial REITs will be retail sales. This affects mall REITs like Simon Property (or SPG) and General Growth Properties (or GGP). Office REITs like Brookfield Office Properties (or BPO) and Vornado Realty Trust (or VNO) will also focus on the leading economic indicator data.

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