REITs Pull-Back | Dividend Cuts | Strong Housing Demand
U.S. equity markets snapped a three-day winning streak on continued concerns of a "second wave" of the pandemic, concern that were partially offset by further evidence of an emerging economic rebound.
Following a gain of 1.9% yesterday, the S&P 500 declined by 0.4% on the day while the Dow Jones Industrial Average dipped 170 points following yesterday's 527 point rally.
After gaining 2.0% yesterday, the broad-based Equity REIT ETFs declined by 1.5% today with 15 of 18 property sectors in negative territory while Mortgage REITs declined by 1.5%.
Prison REITs led the declines today after CoreCivic announced a suspension of their dividend, becoming the 55 equity REIT to suspend or cut dividends since the start of the pandemic.
V-Shaped Housing Recovery? The Mortgage Bankers Association reported that mortgage applications to purchase a home rose for the 9th straight week to an 11-year high and are now 21% higher from the same week last year.