The February new-home sales and durable goods reports will come out Friday, the last batch of key economic data to be released ahead of next week's Federal Reserve policy meeting. These reports are likely to be market movers, one way or another. Hopes have been running high that the Fed will stop after one final hike next week -- hopes that were dashed Thursday by a stronger-than-expected report on existing-home sales, which (along with a spike in crude prices) put downward pressure on Treasuries and stock proxies. The market has been playing a game of cat and mouse with interest rate expectations in recent weeks. Worries that the Fed might hike two or three more times, perhaps slowing economic and profit growth to an unhealthy degree, have set the stage for relief rallies whenever the data has come in on the softer side, as was the case last week. This week, however, these hopes have been contradicted several times. Monday night, a speech by Fed Chairman Ben Bernanke at best failed to confirm the hopes of the "one and done" crowd. On Tuesday, stronger-than-expected core producer prices even revived concerns that maybe the Fed will still hike three more times. Again on Thursday, the economic data tipped the balance of expectations in favor of more rate hikes. Contrary to economists' expectations of further evidence of weakening in the housing market, the National Association of Realtors said existing-home sales rose by 5.2% in February. In addition, KB Home ( KBH) said first-quarter earnings rose 42% from a year ago to $174.5 million, or $2.02 a share, beating estimates by 6 cents a share. KB shares rose 5% although the homebuilder also said new orders had fallen 12% from a year ago. After the data, the market is now pricing in 100% odds that the Fed will hike the fed funds rate to 4.75% next week, and 94% that it will hike to 5% in May. Odds of another hike to 5.25% stand at 6% for the Fed's June meeting and at 25% for the August meeting, according to Miller Tabak.