Fed Defends Credibility • Home Prices Decline • Rent Updates

September 27, 2022 | Hoya Capital

Fed Defends Credibility • Home Prices Decline • Rent Updates Real Estate Daily Recap Sep 27 Written By U.S. equity and bond markets remained under pressure Tuesday following another slate of hawkish Fed commentary as officials cited the need to protect their "credibility" in defending their aggressive policy stance. Declining for the sixth-straight session, the S&P 500 dipped another 0.2% today but the Mid-Cap 400 and Small-Cap 600 along with the tech-heavy Nasdaq 100 each finished fractionally higher.

Real estate equities were laggards as interest rates continued their relentless rise. The Equity REIT Index dipped 1.3% today with 13-of-18 property sectors in negative territory. Pressured by the historic surge in mortgage rates, the Case-Shiller US National Home Price Index declined 0.2% in July from the prior month, which was the first month-over-month decline since February 2012. Apartment List reported that multifamily rental rates continued a trend of moderation from the historically strong levels seen earlier this year - but are still on pace for one of the strongest years of rent growth on record.

Real Estate Daily Recap U.S. equity and bond markets remained under pressure Tuesday following another slate of hawkish Federal Reserve commentary as officials defended their aggressive tightening course, citing the need to protect their "credibility." Declining for the sixth-straight session, the S&P 500 dipped another 0.2% today but the Mid-Cap 400 and Small-Cap 600 along with the tech-heavy Nasdaq 100 each finished fractionally higher. Real estate equities were laggards as interest rates continued their relentless rise.

The Equity REIT Index dipped 1.3% today with 13-of-18 property sectors in negative territory while Mortgage REIT Index dipped another 2% as global interest rate volatility remained near the highest levels since March 2020. A trio of Fed officials - Bullard, Evans, and Kashkari - refused to concede ground on their hawkish policy stance in their public commentary today despite a growing body of evidence that price pressures have cooled ...