|07:00||MBA mortgage prch. index||May start to climb from last week's seasonal low|
|09:00||FHFA house price index||Modest increase expected in June|
|10:00||Existing home sales||Likely to pull back from June's cycle high|
|11:30||2-yr FRN (r) auction||An unchanged $13 billion offering|
|13:00||5-yr note auction||Another $34 billion offering|
Two housing market reports make up today’s economic data calendar. We expect the FHFA purchase-only index to extend its long string of monthly increases with a modest rise in June, but we expect existing home sales to pull back slightly in July after making a new cycle high the month before.
Today’s coupon auctions: 2-year FRN reopening and 5-year note
If last week’s FOMC minutes are any guide, Chair Yellen may try to strike a generally confident tone in her Jackson Hole remarks on Friday while being noncommittal about the near-term rate hike. More broadly, we suspect that Fed attendees at Jackson Hole will be noncommittal about this year’s central theme, which is “Designing Resilient Monetary Policy Frameworks for the Future”. The Fed is quite mindful of the challenges it still faces in laying out an operational roadmap for the post-normalization world, and is in no rush to commit itself prematurely. This week’s MMO looks at a few of the long-run implementation issues mentioned in last week’s FOMC minutes, and especially the question of finding ways around the stigma problems that afflict the discount window.