Real Estate Weekly: REITs And Homebuilders Power Stocks To Best Quarter In A Decade
Real estate equities helped to power the US stock market to its best quarter in nearly a decade. REITs and homebuilders each ended the quarter up by more than 15%.
The revival has been driven by receding interest rates and signs of solid macroeconomic and improving housing-related data. Both the 10-year yield and 30-year mortgage rate remain near 14-month lows.
The rally continued this week with REITs adding 1% and homebuilders jumping nearly 3%. Solid results from Lennar and KB Home confirmed recent optimism around the housing market.
The trifecta of housing data - new home sales, housing starts, and home prices - was released this week. New home sales smashed through expectations, but starts and home prices remain soft.
For the single-family housing market, 2019 is so far looking a lot like 2015, when a sustained pullback in mortgage rates reignited the previously stumbling sector.