Mortgage REITs Rebound On Strong Housing Data [Daily Recap]
- U.S. equity markets rebounded on Thursday following two days of sharp declines despite another slate of ugly unemployment data as investors assess early data from economic reopenings in several states.
- After dipping by roughly 4% over the prior two days, the S&P 500 gained 1.2% while the Dow Jones Industrial Average recovered 377 points following yesterday's 516 point decline.
- After declining by 2.6% yesterday, the broad-based Equity REIT ETFs gained 0.6% on the day with 12 of 18 REIT sectors in positive territory while Mortgage REITs jumped by 4.6%.
- Residential Mortgage REITs and the broader housing sector were among standouts today following encouraging data from Redfin showing a substantial rebound in housing market activity in recent weeks.
- Redfin noted that home-buying demand has "come roaring back" and is now 5.5% higher than it was pre-pandemic while median listing prices are up 5% as "bidding-war battle royales are back" amid historically low inventory levels.
Real Estate Daily Recap
U.S. equity markets rebounded on Thursday following two days of sharp declines despite another slate of ugly unemployment data as investors assess early data from economic reopenings in several states. After dipping by roughly 4% over the prior two days, the S&P 500 ETF (SPY) gained 1.2% while the Dow Jones Industrial Average (DIA) recovered 377 points following yesterday's 516 point decline. Residential Mortgage REITs (REM) and the broader housing sector were among standouts today following encouraging data from Redfin (RDFN) showing a substantial rebound in housing market activity in recent weeks. After declining by 2.6% yesterday, the broad-based Equity REIT ETFs gained 0.6% on the day with 12 of 18 REIT sectors in positive territory while Mortgage REITs jumped by 4.6%.
