Today's Economic Data Highlights
Data on consumer prices and housing starts, plus a couple of Fed
speeches. Fourth POMO in a row better do something about finally getting
a green close or stat arbs will lose all faith in Brian Sack.
The Mortgage Bankers Association’s index of mortgage applications
tumbled 14.4% last week. Although applications for refinancing led the
decline (-16.5%), applications for purchase loans also fell 5%,
reversing most of the preceding week’s increase.
8:00: Boston Fed President Eric Rosengren speaks….to the Chamber of
Commerce in Providence, RI. Mr. Rosengren is currently a voting member
of the FOMC and has been quite supportive of the decision to purchase
8:30: Consumer price index for Oct….We expect food and energy to push the headline index up while the core index rises only modestly.
On headline, median forecast (of 80): +0.3%, ranging from +0.1% to +0.5%; last +0.10%.
On core, median forecast (of 78): +0.1%, ranging from flat to +0.2%; last +0.00%.
8:30: Housing starts and permits for Oct…a modest setback?
Although low in an absolute sense, multifamily starts are vulnerable to a
correction given the large volume of unoccupied rental units.
On starts, median forecast (of 75) -2.0%, ranging from -9.8% to +2.5%; last +0.3%.
On permits, median forecast (of 58) +3.9%, ranging from -9.9% to +14.3%; last -5.6%.
9:15: St. Louis Federal Reserve President James Bullard speaks on
“Past, Present, and Future of the Government Sponsored Enterprises”.…at
the St. Louis Fed. A press briefing follows at 10:30, at which time
Mr. Bullard is sure to get questions not only about this speech but
about the controversy surrounding the FOMC’s decision to engage in
large-scale asset purchases (LSAPs). He is currently a voting member of
11:00: $7-9 billion POMO for bonds maturing 2/15/2018 – 11/15/2020 closes. Fourth POMO in a row. Roughly $80 billion remains until the end of the first POMO schedule.
From Goldman Sachs and Zero Hedge