Following news of a setback in mortgage loan applications, we hear from another Fed speaker around lunch time and from the regional banks in the beige book shortly thereafter…
The Mortgage Bankers Association’s index of mortgage applications tumbled 10.5% last week, as applications for both refinancing and purchases fell 11.2% and 6.7%, respectively.
12:45: Philadelphia Fed President Charles Plosser speaks on “Incentives and Regulation”…in New York. The title does not immediately suggest a focus on the big monetary policy issue facing the Federal Open Market Committee, namely the widely expected adoption of a “QE2” program. However, there is a significant probability—in the question and answer session if not in the speech itself—that he will touches on this. Mr. Plosser is not currently a voting member of the FOMC; his next turn comes in 2011.
14:00: Federal Reserve beige book…This report will cover September and early October, when the data were more mixed relative to expectations than in the previous period, albeit at a subdued rate of growth. August, most of which came in at or above reduced expectations. We suspect the tone of the beige book will remain subdued. The Dallas Fed is due for the summary.