Inflation Cools • Stocks Rally • REIT Earnings Wrap-Up

August 10, 2022 | Hoya Capital

Inflation Cools • Stocks Rally • REIT Earnings Wrap-Up Real Estate Daily Recap Aug 10 Written By U.S. equity markets rallied Wednesday on data showing that consumer price inflation moderated from multi-decade-highs in July as global commodities prices cooled, potentially taking some pressure off the Fed. Rebounding from two days of declines, the S&P 500 jumped 2.1% today while the tech-heavy Nasdaq 100 rallied nearly 3% - now having rebounded 20% from its recent lows.

Real estate equities were broadly higher as well with the Equity REIT Index advancing 1.5% with all 18 property sectors in positive-territory while the Mortgage REIT Index advanced 1.2%. Peak Inflation? Perhaps. Consumer prices decelerated in July from multi-decade highs set in June as slowing global economic growth helped to put downward pressure on goods prices. Homebuilders were notable outperformers today as mortgage rates continue to pull-back from their peaks - now a half-percentage point below their June highs.

Notably, Homebuilders trade at historically low P/E multiples - below their housing crisis lows. Real Estate Daily Recap U.S. equity markets rallied Wednesday on data showing that consumer price inflation moderated from multi-decade-highs in July as global commodities prices cooled, potentially taking some pressure off the Federal Reserve in their recent course of aggressive interest rate hikes. Rebounding from two days of declines, the S&P 500 jumped 2.1% today while the tech-heavy Nasdaq 100 rallied nearly 3% - now having rallied 20% from its recent lows.

Real estate equities were broadly higher as well with the Equity REIT Index advancing 1.5% with all 18 property sectors in positive territory while the Mortgage REIT Index advanced 1.2%. Homebuilders and the broader Hoya Capital Housing Index were notable outperformers today as mortgage rates continue to pull back from their peaks - now a half-percentage point below their June highs. Peak Inflation? Perhaps. Consumer prices decelerated in July from multi-decade highs set in June as slowing global economic growth ...