A Look Back And A Look Ahead For Homebuilding Data

Citi Research analysts gave investors a recap of what went down in homebuilding data last week, along with a heads up for what to expect in the week to come.

• The Homebuilder Index increased 0.2 percent. It’s up 5.4 percent year-to-date, slightly trailing the S&P 50 index (which is up 5.8 percent year-to-date).
• A Weekly Application Survey showed the Purchase Index for mortgage applications was unchanged from a week prior.
• The average contracted interest rate for 30-year fixed rate mortgages decreased to 3.6 percent (down 6 basis points).

Related Link: Brace Yourself: Earnings Season Is Coming

For the week ahead:

• Be on the lookout for Q2 earnings from D.R. Horton, Inc. DHI and PulteGroup, Inc. PHM, both reporting Thursday, July 21.
• The July Housing Market Index (HMI) results were released Monday, reading was 59 vs 60 consensus estimate. The prior month's reading was 60.00.
• Tuesday: The US Census Bureau announces housing starts (consensus estimate is for 1158K) and Building Permits (consensus estimate is 1150K).
• Thursday: Existing Home Sales for June will be released.

The HMI gauges demand for single family homes. A seasonally adjusted HMI reading above 50 indicates “good” sales conditions, at or near 50 is seen as “fair,” while anything well below 50 will be read as “poor.”