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The Week Ahead: Important Data for Homebuilders

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Some important housing data this week

After an uneventful week for real estate investors last week, this week contains some important data, with housing starts, building permits, and the NAHB housing market index. Spring selling season is in full swing, and investors are eager to see how the homebuilders are seeing the upcoming year.

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Economic data this week

Let’s look at a rundown of this week’s economic data.

Monday, April 13, 2015

  • monthly budget statement

Tuesday, April 14, 2015

  • retail sales
  • producer price index
  • NFIB small business optimism
  • business inventories

Wednesday, April 15, 2015

  • Mortgage Bankers Association (or MBA) mortgage applications
  • empire manufacturing
  • industrial production
  • capacity utilization
  • manufacturing production
  • NAHB housing market index
  • TIC flows

Thursday, April 16, 2015

  • initial jobless claims
  • Bloomberg consumer comfort
  • housing starts
  • building permits
  • Philly Fed

Friday, April 17, 2015

  • consumer price index
  • index of leading economic indicators
  • University of Michigan consumer sentiment

Earnings reports this week

Monday, April 13, 2015

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Impact on mortgage REITs

Real estate investment trusts (or REITs) such as MFA Financial (MFA), Annaly Capital (NLY), and American Capital Agency (AGNC) will emphasize data that will move the bond market. The bond market, and by extension, REITs, will hinge on when the Fed is planning to raise rates. Nothing this week should move the bond market.

Impact on the homebuilders

Builders like Lennar (LEN) and PulteGroup (PHM) will focus on housing starts and building permits. The NAHB housing market index will loom large as well. Investors are becoming a bit more optimistic about the sector given the outperformance of the S&P SPDR Homebuilder ETF (XHB).

Investors interested in trading in the mortgage REIT sector via an ETF should look at the iShares Mortgage Real Estate Fund (REM). Investors who are interested in making directional bets on interest rates should look at the iShares 20-Year Bond ETF (TLT).

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