VPN - REITs Rally As Rates Retreat
- Is Bad News is Good News Again? U.S. equity markets rebounded this past week as lukewarm economic data and renewed COVID concerns halted the surge in interest rates and calmed market jitters.
- Closing within 1% of record highs, the S&P 500 jumped 1.7% this past week led by the more yield-sensitive sectors, but gains this week were "top-heavy" with Mid-Caps and Small-Caps lagging.
- Real estate equities - both REITs and homebuilders - delivered strong gains as interest rates pulled back. The broad-based Equity REIT Index gained 2.6% led by residential and technology REITs.
- Three more REITs increased their dividend this week - all in the mortgage REIT sector. However, mall REIT Washington Prime plunged on reports that it's seeking bankruptcy financing. Fellow mall REIT CBL Properties surged after making progress on emerging from Chapter 11.
- No Homes to Sell: Existing Home inventory declined to historic lows last month, pressuring February home sales data despite continued signs of robust demand. Redfin's Homebuyer Demand Index was up 149% from last year.
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REITs Rally As Rates Retreat