Powell Eyed • Home Prices Dip • REIT Capital Raising

November 29, 2022 | Hoya Capital

Powell Eyed • Home Prices Dip • REIT Capital Raising Real Estate Daily Recap Nov 29 Written By U.S. equity markets finished mostly-lower Tuesday ahead of a closely-watched speech from Fed Chair Powell on Wednesday - the last major scheduled Fed speech before the December rate decision. Following declines of 1.5% on Monday, the S&P 500 slipped another 0.2% today, but the Mid-Cap 400 and Small-Cap 600 each finished modestly higher.

The tech-heavy Nasdaq 100 dipped 0.8%. Real estate equities were the best-performing equity group today with the Equity REIT Index advancing 1.7% with all 18 property sectors in positive territory. Mortgage REITs advanced 0.7%. The Case-Shiller US National Home Price Index - which lags current market conditions by about 3 months - declined 1.0% in September from the prior month - the third-straight month-over-month decline and the largest single-month decline since November 2011.

Apartment REIT AvalonBay (AVB) priced $350M of 10-year notes due 2033 at a 5.00% fixed interest rate. By comparison, AVB issued $700M of 10-year notes last September at a 2.05% interest rate. Income Builder Daily Recap U.S. equity markets finished mostly-lower Tuesday ahead of a closely-watched speech from Fed Chair Powell on Wednesday - the last major scheduled Fed speech before the December rate decision. Following declines of 1.5% on Monday, the S&P 500 slipped another 0.2% today, but the Mid-Cap 400 and Small-Cap 600 each finished modestly higher.

The tech-heavy Nasdaq 100 dipped 0.8%. The 10-Year Treasury Yield climbed 5 basis points to 3.75%. Real estate equities were the best-performing equity group today with the Equity REIT Index advancing 1.7% with all 18 property sectors in positive territory while the Mortgage REIT Index advanced 0.6%. Homebuilders advanced 1.2% despite data showing another monthly decline in home prices. The historically-swift surge in mortgage rates this year continues to pour icy-cold water over the previously-red-hot U.S. housing sector.

The Case-Shiller US National Home Price Index - which ...