Fed In Focus • Soft Landing • Resilient Housing Demand

June 22, 2022 | Hoya Capital

Fed In Focus • Soft Landing • Resilient Housing Demand Real Estate Daily Recap Jun 22 Written By U.S. equity markets finished roughly flat Wednesday as investors parsed testimony from Fed Chair Powell, who acknowledged that a recession is "certainly a possibility” as it seeks to tame inflation. Holding onto most of yesterday's relief rally which followed the worst week since 2020, the S&P 500 slipped 0.1% while the Mid-Cap 400 and Small-Cap 600 posted similarly modest declines.

Real estate equities were among the leaders today with strength seen across the residential and technology REIT sectors as long-term interest rates moderated. The Equity REIT Index gained 1.2%. Homebuilders led the rebound today on additional signs of resilient housing demand in the face of sharply higher rates. Mortgage demand rebounded last week while KB Homes reported surprisingly strong results this afternoon and reiterated its full-year guidance. Apartment Income (AIRC) gained about 1% today after it announced that it will take full ownership of four newly-developed properties from Aimco (AIV) and put further separation in the strategic relationship between the two firms following their split in 2020.

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U.S. equity markets finished roughly flat Wednesday as investors parsed testimony from Fed Chair Powell, who acknowledged that a recession is "certainly a possibility” as it tightens monetary policy to tame inflation. Holding onto most of yesterday's relief rally which followed the worst week since 2020, the S&P 500 slipped 0.1% while the Mid-Cap 400 and ...