Following strong gains last week, the Hoya Capital US REIT Index finished the day higher by another 0.5%, led by the student housing, manufactured housing, and apartment REIT sectors. The timber, hotel, and data center REIT sectors lagged on the day. The S&P 500 finished lower by 0.5% while the Nasdaq finished lower by 0.7%. The 10-Year yield finished the day lower by 1 basis point.

The Hoya Capital US Housing Index finished the day higher by 0.5%, setting a new all-time record high, with five of the eight housing sectors finishing in positive territory. The Housing Industry was led by the Homebuilder and Real Estate Technology & Brokerage sectors.

Inflation data highlights this week’s economic calendar with CPI data released on Thursday and PPI data released on Friday. Rising oil prices, along with rising costs from tariffs and trade disputes, had put upward pressure on inflation throughout 2018, pushing both the 10-year yield and 30-year mortgage rates to post-recession highs. The plunge in oil prices in late 2018, along with moderating global growth, has quelled much or all of that inflationary pressure. All three inflation indexes - Core CPI, PPI, and PCE - were cooler than expected in May and have continued to trend down in recent months. Moderating inflation should give the Fed more confidence that an interest rate cut has limited risk of resulting in near-term overheating.

For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Homebuilders, Apartments, Student Housing, Single Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Apartments, Shopping Centers, Hotels, Office, Storage, and Real Estate Crowdfunding.

Disclosure: An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. The information presented does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. We consider the information in this presentation to be accurate, but we do not represent that it is complete. It should not be relied upon as the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances before investing. Visit our website for a complete definition of all indexes cited in this report. Investing involves risk and loss of principal is possible.