Real Estate Weekly Review: Fed Pauses, REITs Rally
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- The REIT rejuvenation continued this week after the Federal Reserve signaled a continued pause in monetary policy. REITs pushed their 2019 gains above 15%.
- Moderating inflation and slowing global growth has pushed the 10-year yield to the lowest level in 14 months. The 30-year mortgage rate, meanwhile, dipped to the lowest since February 2018.
- Home sales data remains choppy, but existing home sales data beat estimates in February. Forward-looking metrics continue to point to a reacceleration this year.
- Lower oil prices and easing trade tensions have relieved the broader inflationary pressure felt in 2018, but housing inflation remains unyielding and has picked up since late last year.
- Rent growth accelerated to the fastest rate since 2016, according to Yardi. Demand for apartments remains unwavering while supply across the broader US housing sector cooled in 2018.
