Real Estate Daily Recap: REITs Modestly Lower, Homebuilders Flat as 10-Year Yield Clings to 2-Handle
Following a 0.6% gain last week, the Hoya Capital US REIT Index finished the day lower by 0.6%, trending lower on an otherwise quite summer day on Wall Street. Data centers were the lone REIT sector in positive territory while hotel, shopping center, and mall REITs led to the downside. The S&P 500 finished slightly lower on the day while the Nasdaq finished flat. The 10-Year yield retreated another 5 basis points on the day, barely clinging onto the 2-handle at 2.02%.
The Hoya Capital US Housing Index finished the day lower by 0.6% ahead of a busy Tuesday of Housing data with Home Prices and New Home Sales data released. The Homebuilding sector was the lone housing sector in positive territory on the day while the Real Estate Technology & Brokerage and the Home Improvement Retail sector lagged on the day.
This week will be be week two of the busy fortnight for housing data. The FHFA and Case Shiller Home Price Indexes will both be released on Tuesday and are expected to show a continued deceleration in home prices. These relatively slow-reacting indexes continue to reflect soft conditions in late 2018 and early 2019, and we expect home prices to begin to reaccelerate later this year given the plunge in 30-year fixed mortgage rates. New Home Sales data is also released on Tuesday, which is expected to show a continuation of recent strength following two months of 11% and 7% year-over-year growth. Pending Home Sales data on Thursday and Core PCE inflation data round out the economic data calendar this week.
For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Homebuilders, Apartments, Student Housing, Single Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Apartments, Shopping Centers, Hotels, Office, Storage, and Real Estate Crowdfunding.
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