BOJ Surprise • Yields Jump • Housing Data

December 20, 2022 | Hoya Capital

BOJ Surprise • Yields Jump • Housing Data Real Estate Daily Recap Dec 20 Written By U.S. equity markets snapped a four-day skid despite another jump in benchmark interest rates following a surprise rate hike from the Bank of Japan. Rebounding from its lowest levels since early November but still on pace for a third-straight weekly decline, the S&P 500 gained 0.1% while the Nasdaq 100 finished lower for a fifth-session.

Real estate equities were mixed today with the Equity REIT Index declining 0.3% with 14-of-18 property sectors in negative territory, while the Mortgage REIT Index also finished lower by 0.3%. Apple Hospitality (APLE) - which we own in the REIT Dividend Growth Portfolio - declared a supplemental special dividend of $0.08/share - the fourth hotel REIT to declare a special dividend over the past two weeks. Housing Starts tumbled 16% from last year to a rate of 1.427M - the lowest levels in over two years - while Building Permits dipped 22% from last year to a rate of 1.342M - the lowest level since June 2020.

Income Builder Daily Recap U.S. equity markets snapped a four-day skid despite another jump in benchmark interest rates following a surprise rate hike from the Bank of Japan. Rebounding from its lowest levels since early November but still on pace for a third-straight weekly decline, the S&P 500 gained 0.1% today while the tech-heavy Nasdaq 100 finished lower for a fifth-straight session. The Mid-Cap 400 and Small-Cap 600 each posted gains of 0.5%.

The 10-Year Treasury Yield ( US10Y ) jumped 10 basis points for a second-straight day to close at 3.68% after dipping to three-month lows last week. Real estate equities were mixed today with the Equity REIT Index declining 0.3% with 14-of-18 property sectors in negative territory, while the Mortgage REIT Index also finished lower by 0.3%. The surprise rate hike from the Bank of Japan - which raised its ...