The FHFA Home Price Index is among this Week’s Key Releases

Home Prices Dominate the Week ahead for Real Estate Investors (Part 1 of 6)

This week contains some important economic data

For real estate investors, this week contains a few important economic releases. On Monday, we get existing home sales. Analysts will be watching to see if there’s a rebound from the weather-related slowdown earlier this year. On Tuesday, we’ll get the FHFA Home Price Index, which is a real estate price index based on homes with a conforming loan. This index avoids both extremes of the market—distressed homes bought with cash and luxury homes financed with jumbo mortgages. It tends to be more of a central tendency index. Finally, on Friday, we’ll get the third and final revision to fourth quarter GDP.

Economic data this week

Here’s a rundown of this week’s economic data.

Monday, March 23, 2015

• Chicago Fed National Activity Index

• existing home sales

Tuesday, March 24, 2015

• consumer price index

• FHFA Home Price Index

• Markit US Manufacturing PMI

• new home sales

• Richmond Fed

Wednesday, March 25, 2015

• Mortgage Bankers Association (or MBA) mortgage applications

• durable goods

• capital goods

Thursday, March 26, 2015

• initial jobless claims

• Bloomberg consumer comfort

• Kansas City Fed

Friday, March 27, 2015

• GDP

• personal consumption

• University of Michigan Consumer Sentiment

Earnings reports this week

• no real estate–related earnings reports

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 whether the Fed is moving in June. We’ll get the consumer price index. However, inflation remains subdued. It shouldn’t be market-moving—even if it is higher than expected.

Investors interested in trading 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 fund (TLT).

Continue to Part 2

Browse this series on Market Realist:

• Part 2 - The FOMC Meeting Dominated Last Week for Real Estate Investors

• Part 3 - The 10-Year Bond Rallies on the March FOMC Statement

• Part 4 - Mortgage Rates Fall as Bonds Rally: A Critical Housing Input