EQUITY OPTIONS: EU Bank Outright Put Buyer

House prices were mixed versus expectations in June, but the overall trend is toward further softening. 

• The FHFA's house price index fell 0.2% M/M (-0.1% expected, -0.1% prior), with the S&P CoreLogic 20-City index falling 0.25% M/M (-0.20% expected, -0.32% prior).
• Momentum In all of the major house price aggregates is turning decidedly lower, amid rising inventories/low sales and continued high mortgage rates negatively impacting affordability.
• The FHFA's index is now falling at a 1.7% 3M/3M annualized rate, the weakest since 2011, with the S&P's 20-City at -2.7%, weakest since early 2023. This should be taken into broader context: both indices are up around 50% vs the start of 2020 and remain positive on a Y/Y basis (2.6% and 2.1% respectively) but have slowed considerably on that basis in the last several months.
• With pending home sales remaining weak and homebuilder sentiment as negative as it's ever been, we continue to expect downside pressure on prices.

SFIV5 96.10/96.20/96.30c fly, sold at 2.75 in 3k.

SFIU6 96.90c bought for 9 up to 9.25 in 4k (ref 96.39).