Real Estate Rally Continues As Mortgage Rates Pull Back

January 12, 2019 | Hoya Capital

Real Estate Rally Continues As Mortgage Rates Pull Back Uncategorized Jan 12 Written By Read our Real Estate Weekly Review on SeekingAlpha! What shutdown? The rally continued for US equities as the major indices notched their fourth straight week of gains. The S&P 500 has jumped 14% since bottoming in December. Real estate and housing-related equities continue to lead the rally in 2019. REITs are up more than 6% this year, while the Housing Industry Index is up nearly 9%.

Housing starts and new home sales data continues to be delayed by the shutdown. Indications are that single-family home sales significantly weakened in the final quarter of 2018. After a dismal end to 2018, housing data is showing signs of life. The MBA Purchase Index, a leading indicator of home sales, climbed to the highest level since 2010. Corroborating the sensitivity of single-family housing demand to mortgage rates, homebuilder sentiment improved in December despite volatile financial markets.

Rates, however, remain at the upper-end of the post-recession range. Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous REZ: A House Tour Of The iShares Residential REIT ETF Next Next Snapping 6-Month Skid, Existing Home Sales Beat Expectations