Real Estate Daily Recap: REITs End Lower, Housing Ends Higher Following Tariff Truce With Mexico
Coming off a 2.5% gain last week, the Hoya Capital US REIT Index ended the day lower by 0.3% as US stocks rallied on news that the US and Mexico came to an agreement to avoid the threatened 5% tariffs on imported goods. The hotel, data center, and single family rental REIT sectors led the way, while the mall, net lease, and healthcare REIT sectors lagged. Following a 4.5% surge last week, the S&P 500 gained another 0.5% while the Nasdaq climbed 1.2%. At 2.14%, the 10-Year yield finished the day higher by 6 basis points after hitting the lowest level in 21 months last week.
The Hoya Capital US Housing Index finished the day higher by 0.3% with four of the eight sectors in positive territory. The Home Furnishings and Homebuilding Products sector were the outperformers on the day.Redfin, Aarons, At Home, Restoration Hardware, and La-Z-Boy each gained more than 3.5% on the day.
The economic calendar turns to inflation and retail data this week. Inflationary pressure has remained muted since late 2018 but has begun to creep higher in recent months as oil prices rebounded from their lows last December. PPI is released on Tuesday while CPI comes out on Wednesday. Retail data, released on Friday, has softened in recent months after a relative resurgence throughout 2018. JOLTs data on Monday will round out this week’s major economic releases.
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