August 10, 2018

Geopolitical concerns resurfaced last week as the U.S. put a tremendous amount of currency pressure on Turkey sending the lira plummeting and causing investors to fear contagion risk. The DJIA started the week off strong hitting 25,628 on Tuesday before succumbing to events in Turkey and closing the week at 25,313, down 149 points. LIBOR swap rates also moved down on the global fears. The 10-year LIBOR swap rate was down 9 basis points. The SIFMA Index continued to shoot up last week resetting at 1.45%, up 16 basis points on the week at 51 basis points over the past 2 weeks. Rates decreased slightly for the 10-year treasury closing Friday at 2.874%, down 7.6 basis points week over week. The 30-year treasury finished the week at 3.031%, down 5.8 bps from the previous Friday’s close. The 10-year MMD was down 3 basis points and 30-year MMD was down 1 basis point, closing last week at 2.45% and 3.04%, respectively. As of Friday, the percent of municipals to treasuries was 85.25% for the 10-year maturity and 100.30% for the 30-year maturity. 

Single-family issuers for the week were Tennessee Housing Development Agency, New Mexico Mortgage Finance Authority, Indiana Housing & Community Development Authority, North Dakota Housing Finance Agency, Idaho Housing & Finance Association, and Utah Housing Corporation. Issuers in the multifamily space included Kentucky Housing Corporation, Mississippi Home Corporation, and New Jersey Housing & Mortgage Finance Authority.

Economic news through August 17th, 2018 includes Mortgage Delinquencies, MBA Mortgage Foreclosures, Import Price Index YoY, Export Price Index YoY, MBA Mortgage Applications, Empire Manufacturing, Retail Sales Advance MoM, Industrial Production MoM, Initial Jobless Claims, Housing Starts, Building Permits, Leading Index, and the University of Michigan Sentiment report.

There are multiple housing deals on the calendar for this week, including the following:

$150,000,000     Pennsylvania Housing Finance Agency
$100,000,000     Minnesota Housing Finance Agency
$87,430,000       Oregon Housing & Community Services Department
$74,785,000       Wyoming Community Development Authority
$42,795,000       Iowa Finance Authority Housing
$28,000,000       Florida Housing Finance Corporation