Real Estate Providing Shelter In Choppy Markets
The volatile summer for global markets continued last week. Trade tensions and monetary policy were front-and-center as the major US equity indexes declined for the fourth straight week.
While European and Asian economies continue to show signs of stress, the US economy continues to chug along. Economic data and retail earnings indicated that the US consumer remains resilient.
Ironically, the global economic slowdown has been a boon for the domestic-focused commercial and residential real estate sectors, which continue to outperform as interest rates continued their sharp decline.
Home sales data is finally beginning to reflect the recent plunge in mortgage rates. After upward revisions, both new and existing home sales data beat estimates last month.
Existing home sales recorded their first year-over-year increase in sales in seventeen months while the upwardly revised rate of new home sales in June was the strongest in twelve years.