FRI News and Press, First Trust S&P REIT Index Fund From 05/24/22

Now that interest rates are rising and the Fed is no longer buying mortgage-backed securities, mortgage rates are nearly double what they were a year ago. This and high house prices may be reducing demand and cooling the housing market. A cooling housing market does not necessaril...

Since my article on The Macerich Company one year ago, its price has risen and fallen back to its previous level. However, MAC is in a much stronger position, and operational improvements and deleveraging have both seen successful initial results. MAC should also be well-positione...

Last quarter was the first time in the last one and a half years that Dynex Capital could grow its book value per share. The rise in mortgage rates, demand for housing, work-from-home trends, and declining prepayment risk are all in Dynex’s favor. However, I believe that th...

The April drop follows a 10.5 percent decline in March, a 4.7 percent fall in February, and a 1.0 percent drop in January. Sales of new single-family homes were down in all four regions of the country in April. The months’ supply is at a very high level by historical compar...

Rising mortgage rates and a general lack of affordability are resulting in a steep drop off in demand for housing. Inventory for sale is rising rapidly, which suggests we are moving from an environment of excess demand, seen since the start of the pandemic, to one of excess supply. ...

April New Home Sales from the Census Bureau came in at 591K, down 16.6% month-over-month from 709K in March. The Census Bureau's mid-month population estimates increased 77% in the US population since 1963. New single-family home sales are 30.6% above the first 1963 sales. F...

Plunges in sentiment like we are seeing right now only go this far during a recession. People don’t need the government to tell them we are in a recession to start feeling like we are in a recession. The unprecedented mountain of consumer debt leaves us far less resilient to wi...

One step forward, one back. After nearly doubling in value last year, Mall REITs have been the worst-performing major property sector in 2022 as the stimulus-fueled retail strength has stalled. The tech wreck has spilled over to become the retail wreck in recent weeks. Retail stocks a...

Since its peak at the end of 2021, nearly $8 trillion in market cap has been knocked off the S&P 500 alone. As home prices were leaping over the past few years, households sustained spending by borrowing against their rising equity. It’s spooky that this cycle has combi...

As a real estate developer first and then a REIT analyst, I’ve learned that owning quality merchandise is essential. Many of my past mistakes have been directly correlated to the chase for yield over quality. "Macho Man" was the textbook example of cream rising to the top. ...