COMP - Why Opendoor Innovative Industrial Properties and Compass Stocks Jumped This Week
2023-09-01 16:18:03 ET
Real estate stocks including Opendoor Technologies (NASDAQ: OPEN) , Innovative Industrial Properties (NYSE: IIPR) , and Compass (NYSE: COMP) were all moving higher this week in response to macroeconomic data that seemed to convince investors that the Federal Reserve could become more accommodative with its monetary policy and finally stop raising rates.
All three stocks, which operate a variety of real estate businesses, are highly sensitive to interest rates and mortgage rates, which make it harder for real estate companies to borrow and for prospective homebuyers and others to buy property.
Among the data that helped push the stocks higher this week was a personal consumption expenditures (PCE) report, the Fed's preferred inflation gauge, showing that the trend in consumer prices continues to moderate, although the index ticked up modestly from June to July on a year-over-year basis, up 3.3%.
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Why Opendoor, Innovative Industrial Properties, and Compass Stocks Jumped This Week