Real Estate Stocks Decline, Ending Six-Day Winning Streak As Mortgage Rates Surge To 23-Year Highs
Portfolio Pulse from Piero Cingari
Real estate stocks, tracked by the Real Estate Select Sector SPDR Fund (NYSE:XLRE), fell by over 1% on Thursday, ending a six-day winning streak. This was due to higher inflation rates and a surge in mortgage rates to 23-year highs. Office REITs were the hardest hit, with Hudson Pacific Properties Inc. (NYSE:HPP), Paramount Group Inc. (NYSE:PGRE), Douglas Emmett, Inc. (NYSE:DEI), and Vornado Realty Trust (NYSE:VNO) experiencing significant declines. Other real estate companies such as Alexandria Real Estate Equities, Inc. (NYSE:ARE), Prologis Inc. (NYSE:PLD), CBRE Group Inc. (NYSE:CBRE), and Boston Properties, Inc. (NYSE:BXP) also saw declines.
October 12, 2023 | 9:13 pm
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NEGATIVE IMPACT
Alexandria Real Estate Equities, Inc. (NYSE:ARE) fell nearly 4% due to the surge in mortgage rates.
The rise in mortgage rates has led to a decline in real estate stocks, including ARE. This has a direct negative impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Boston Properties, Inc. (NYSE:BXP) saw a decline of 2.2% due to the surge in mortgage rates.
The rise in mortgage rates has led to a decline in real estate stocks, including BXP. This has a direct negative impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
CBRE Group Inc. (NYSE:CBRE) saw a decline of 2.2% due to the surge in mortgage rates.
The rise in mortgage rates has led to a decline in real estate stocks, including CBRE. This has a direct negative impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Douglas Emmett, Inc. (NYSE:DEI) declined by 3.9% due to the surge in mortgage rates.
The rise in mortgage rates has led to a decline in real estate stocks, including DEI. This has a direct negative impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Hudson Pacific Properties Inc. (NYSE:HPP) dropped 5.9% due to the surge in mortgage rates.
The rise in mortgage rates has led to a decline in real estate stocks, including HPP. This has a direct negative impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Paramount Group Inc. (NYSE:PGRE) tumbled 5.3% due to the surge in mortgage rates.
The rise in mortgage rates has led to a decline in real estate stocks, including PGRE. This has a direct negative impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Prologis Inc. (NYSE:PLD) dropped 2.3% due to the surge in mortgage rates.
The rise in mortgage rates has led to a decline in real estate stocks, including PLD. This has a direct negative impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Vornado Realty Trust (NYSE:VNO) experienced a 3.8% decrease due to the surge in mortgage rates.
The rise in mortgage rates has led to a decline in real estate stocks, including VNO. This has a direct negative impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Real Estate Select Sector SPDR Fund (NYSE:XLRE) fell by over 1% due to higher inflation rates and a surge in mortgage rates.
The rise in inflation and mortgage rates has led to a decline in real estate stocks, which the XLRE tracks. This has a direct negative impact on the fund.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100