Yields Surge • Global Tightening • 6% Mortgage Rates

September 22, 2022 | Hoya Capital

Yields Surge • Global Tightening • 6% Mortgage Rates Real Estate Daily Recap Sep 22 Written By U.S. equity markets remained under pressure Thursday while benchmark interest rates surged as central banks around the world responded to another "jumbo" Fed hike with their own monetary tightening actions. Pushing its week-to-date declines to 3%, the S&P 500 dipped another 0.8% today to its lowest level since July while the Mid-Cap 400 and Small-Cap 600 slid more than 2%.

Real estate equities were broadly lower as well with the Equity REIT Index declining by 1.3% today with 17-of-18 property sectors in negative territory while the Mortgage REIT Index slid 3.6%. American Tower (AMT) - the largest equity REIT in the U.S. - hiked its dividend for the second time this year, one of 108 REITs that have raised their dividend this year compared to 7 dividend cuts. Lennar (LEN) rallied 2% after reporting surprisingly solid results amid pressure from surging mortgage rates, recording a 13% year-over-year increase in home deliveries - in line with its prior guidance - while gross margins remained near record-highs.

Real Estate Daily Recap U.S. equity markets remained under pressure Thursday while benchmark interest rates surged as central banks around the world responded to another "jumbo" Fed hike with their own monetary tightening actions. Pushing its week-to-date declines to 3%, the S&P 500 dipped another 0.8% today to its lowest level since July while the Mid-Cap 400 and Small-Cap 600 each slid more than 2%. Real estate equities were broadly-lower as well with the Equity REIT Index declining by 1.3% today with 17-of-18 property sectors in negative territory while the Mortgage REIT Index slid 3.6%.

Homebuilders were mixed as a relatively solid report from Lennar offset a continued surge in mortgage rates to above 6% - the highest levels since the Financial Crisis. In the wake of the Fed's interest rate hike on Wednesday, more than half-dozen central ...