KBWY - Bad News Is Good News

• U.S. equity markets rebounded this week - just the second positive week in the past twelve - as interest rates moderated on further signs of softening global growth while resilient housing data calmed market jitters.
• Rebounding from its worst week since the depths of the pandemic, the S&P 500 rallied nearly 7% on the week, cutting its drawdown to below the 20% "bear market" threshold.
• Real estate equities were broadly higher as well, with notable strength from the "essential" property sectors - housing, technology, and industrial - amid a bid for defensive, domestic-focused market segments.
• The surge in rates hasn't resulted in the sharp contraction in housing demand - or the surge in inventory levels - that some feared. New and Existing Home Sales both topped analysts' estimates this week, while home builder earnings results were surprisingly strong.
• Mortgage REIT New Residential surged 13% this week after announcing that it will internalize its management structure, which the company estimates will result in significant cost savings.

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