Trade Truce Sends Stocks And Housing Higher, REITs Lower

• Done Deal, Phase 1. US equity markets ended a three-week losing streak after the US and China agreed to a partial trade deal that delays next week's planned tariff hike.
• While we're far from out-of-the-woods on trade tensions, this week's truce came after weeks of escalating tensions that bled into mainstream American sports and entertainment culture.
• REITs and other defensive and yield-sensitive equity sectors sold-off on signs of easing tensions. The 10-Year yield jumped 23 basis points as the yield curve shifted back to positive territory.
• Continuing to lead this year's gains, the US housing sector set another new all-time record high, led by the home furnishings and home improvement sectors.
• Inflation data came in cooler-than-expected. Housing costs continue to be the primary driver of what little overall inflation that there is. At 3.8%, Primary Rents accelerated to within 10 basis points of 12-year highs.
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It'll be a fairly busy week of economic data with Retail Sales and Homebuilder Sentiment data released on Wednesday and Housing Starts & Building Permits released on Thursday. Starts and Permits are each coming off their best months in more than 12 years, powered by the tailwinds of significantly lower mortgage rates and strong demographic-driven demand.

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

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