REIT - Sticky Inflation Or Bad Data?
2024-02-18 09:00:00 ET
Summary
- U.S. equity markets were mixed this past week as benchmark interest rates rebounded to three-month highs as hotter-than-expected inflation data fueled concern that "sticky" inflation may delay rate cuts.
- Snapping a five-week winning streak that had lifted the large-cap benchmark to fresh record-highs, the S&P 500 slipped 0.3%, posting a weekly loss for just the second time since October.
- Real estate equities were among the better performers this week as a mostly upbeat slate of earnings reports pushed back on the drumbeat of "CRE distress" which helped to offset rate-related headwinds.
- All eyes were on the Consumer Price Index report this week, which was perhaps best characterized as "lukewarm" - showing some conflicting signals in January following a period of definitive disinflation in the prior several months.
- Upside standouts this week in the REIT space included Arbor Realty - which surged after reporting significantly lower loan delinquency rates recent "short reports" had indicated - and Welltower, which reported a decisive recovery in its Senior Housing portfolio.
Real Estate Weekly Outlook
U.S. equity markets were mixed this past week as benchmark interest rates rebounded to the cusp of three-month highs as hotter-than-expected inflation data fueled concern that "sticky" inflation may delay the Fed's rate cut path. While evidence suggested that this stickiness was more a function of "stale" housing-related inflation data than a true firming of price pressures, markets reflected concern that "perception is reality" for a Federal Reserve that has expressed an unshaken bias towards a "high for long" policy approach....
Sticky Inflation Or Bad Data?