Housing data will take investor focus on Wednesday as repeated presentation of Fed Chair Janet Yellen’s dovish remarks and subdued geopolitical news keep the U.S. economy, and its indications for an interest rate hike, in the spotlight.
“Tomorrow’s testimony will be less impactful than today’s,” said Art Hogan, chief market strategist at Wunderlich Securities. “It appears to be a solid weak of housing-related data.” In the second day of semi-annual congressional testimony, Yellen will address the House Financial Services Committee on Wednesday. Next in this housing data-heavy week is weekly mortgage applications at 7 a.m. and new home sales at 10 a.m. on Wednesday.
“We may see pickup (in new homes sales) as people coming back to the marketplace are holding out for that (new) apartment versus suburban house,” said Jeff Taylor, co-founder of mortgage processor Digital Risk. He added that an improving housing market is proof of the strong wage growth and employment the Fed is watching for.