Highlight of the week
We’re heading into the end of August and many investment professionals will be watching markets from the beach. We’ll get a few real estate–related numbers this week with new home sales, existing home sales, and the FHFA House Price Index. The second revision to Q2 GDP will be out on Friday. Finally, we’ll get numbers from luxury builder Toll Brothers.
Economic data this week
Below is a summary of this week’s economic data.
Monday, August 22:
- Chicago Fed National Activity Index
Tuesday, August 23:
- new home sales
- Richmond Fed
Wednesday, August 24:
- Mortgage Bankers Association mortgage applications
- FHFA House Price Index
- existing home sales
Thursday, August 25:
- initial jobless claims
- Bloomberg Consumer Comfort Index
- durable goods
- Kansas City Fed
Friday, August 26:
- GDP
- consumer sentiment
Earnings this week
Tuesday, August 23
- Toll Brothers (TOL)
Implications for mortgage REITs
REITs such as Annaly Capital Management (NLY) and American Capital Agency (AGNC) will likely focus on data that will move the bond market. Nothing this week should really move the market, unless the GDP numbers are way outside of expectations. Investors who want to bet on interest rates can look at the iShares 20+ Year Treasury Bond ETF (TLT).
Impact on homebuilders
Homebuilders such as PulteGroup (PHM) and CalAtlantic Group (CAA) will pay the most attention to the data on new home sales, existing home sales, and the numbers from Toll Brothers. Investors can get access to the homebuilding sector through the SPDR S&P Homebuilders ETF (XHB).
In the next part of this series, we’ll discuss what happened last week.
