Northstar Realty Finance Corp
Annaly Capital leverages its portfolio with repurchase agreements. Annaly Capital’s repurchase agreements fell from $54.4 billion to $53.9 billion in 2Q16.
Home prices in the Pacific and Mountain states have outperformed prices in the rest of the country over the past two years.
In May 2016, the FHFA (Federal Housing Finance Agency) reported that house prices rose by 0.2% month-over-month and 5.6% year-over-year.
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The latest Existing Home Sales report shows available inventory at 4.7 months and a market that’s tilted heavily in favor of sellers.
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From March 2015 to March 2016, the Pacific states took the lead with home price appreciation of 9.5%, followed by the Mountain states with a gain of 8.5%.
Annaly Capital (NLY) and most other mortgage REITs tend to lever their portfolios with repurchase agreements.
Prices continue to climb In February 2016, the FHFA (Federal Housing Finance Agency) reported that home prices grew 0.4% month-over-month and 5.6% year-over-year. Home prices have eclipsed their April 2007 peak and are hitting new highs. A tight real estate market is driving prices higher. The latest Existing Home Sales report shows available inventory at 4.5 […]
In January 2016, the FHFA reported that house prices grew 0.5% month-over-month. The prices rose by 6% year-over-year. They’re higher than the peak in April 2007.
In December 2015, the FHFA reported that house prices grew 0.4% month-over-month, rising by 5.2% year-over-year.
Residential REITs derive their revenue from rentals and apartment sales. Rising rates could increase the borrowing cost for investors. The asset’s value falls.
Annaly Capital’s repurchase agreements decreased from $71.4 billion to $60.5 billion in 1Q15. The average days to maturity on its repossessions increased from 141 to 149.
Agency mortgage-backed securities and the new Agency Credit Risk transfer bonds accounted for $70.5 billion of Annaly’s $78.7 billion in assets.
Maverick Capital increased its position in Northstar Realty Finance (NRF) by more than $21 million in stock. Northstar represented 1.06% of the fund’s total portfolio in 4Q14.
Maverick Capital increased its position in Santander Consumer USA Holdings (SC) by more than $70 million in stock. Santander accounts for 4.44% of the fund’s portfolio in 4Q14.
In January 2015, home prices grew 0.3% month-over-month, up 5.1% year-over-year. Prices are now within 3.5% of their April 2007 peak.
The FHFA House Price Index breaks down home price appreciation by region and by state.
The FHFA House Price Index only looks at houses with mortgages guaranteed by Fannie Mae and Freddie Mac.
Over the past year, the percentage of people who think home prices will increase grew from 43% to 49%. Month-over-month, this number was up 3%.
We have a big week ahead, with a slew of important economic data and earnings from the mortgage REIT sector. The biggest REIT will be Annaly Capital reporting on Wednesday.