CME Housing Futures post Case Shiller #’s

Quotes on all regions of the CME housing contracts have slipped slightly this morning after Oct price change summarythe release of the August Case Shiller indices (with the exception of the DEN contract that is up slightly).  On average bids are off about 1/2 point while offers are lower by 1/4 leading to slightly wider bid/ask quotes.

Bid/ask spread widening has occurred across the expirations with regional X16 and X17 contract spreads being negatively impacted by wider HCI X16 and X17 quotes (as those wider quotes feed through to regional contract prices via inter-city spreads).  (The table to the right highlights summary information.  The Reports section has a more detailed table of my tally of price changes by contract since yesterday.)  That said HCIX16 and X17 bid/ask spreads are at the tightest levels in several weeks (0.8 and 1.0 points).  Front contract bid/ask spreads average 1.1 points (out from 0.9 the night before).  Spreads range from CHI and HCI being the tightest (as of now) at 0.8 points while SFR is 1.4 points.

There has been no meaningful change to more distant implied HPA (e.g. Nov ’16 to ’17, ’18, ’19 contracts).

While there was one HCI X16/x17 calendar spread traded recently, there have been no trades today.

Please feel free to contact me (johnhdolan@homepricefutures.com) if you have any questions or trade ideas.

3 Comments

  1. I hear you that price discovery can be a challenge for those not very involved in futures. I know that futures are quoted on Bloomberg, and that some vendors (e.g. EQuotes) distribute prices (for a fee). Feel free to use the month-end prices that I’ve just posted in the Reports section as a guide, or to call me if you need a quote. There’s no Open Interest in Boston so I’m very eager to post a trade. It can be outright, a calendar spread, or a bet on whether Boston prices will do better/worse than say New York or the CUS index over the next 1- 2 years (so out to X16, X17).
    Thanks, John

  2. I tried finding the (Boston) futures on Bloomberg without luck. However, I did discover that Yahoo! Finance does have them and reports the bid and ask prices, so I’ll use that. Thanks.

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