Mortgage Rates Fall To Lowest Level In Over A Year, Ease Pressure On Homebuyers: 'Good News For Home Price Appreciation'
Portfolio Pulse from Piero Cingari
Mortgage rates have fallen to their lowest levels in over a year, driven by expectations of Federal Reserve rate cuts. This has increased homebuyers' purchasing power and boosted refinancing applications. Goldman Sachs has revised its home price appreciation forecasts upwards for 2024 and 2025. Mortgage-linked stocks and ETFs, including REZ, MORT, REM, RKT, UWMC, and XHB, have seen gains as a result.
August 08, 2024 | 4:42 pm
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The VanEck Mortgage REIT Income ETF (MORT) saw a 0.9% increase, reflecting optimism in the mortgage market due to lower rates.
Lower mortgage rates are expected to benefit mortgage REITs, leading to gains in MORT.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares Mortgage Real Estate ETF (REM) gained 0.8% amid positive market sentiment driven by falling mortgage rates.
Falling mortgage rates are likely to benefit mortgage real estate investments, leading to gains in REM.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares Residential and Multisector Real Estate ETF (REZ) rose 0.6% due to positive sentiment in the property market following the drop in mortgage rates.
The drop in mortgage rates has increased homebuyers' purchasing power, positively impacting the residential property market and boosting REZ.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Rocket Companies Inc. (RKT) shares rose 3.3% as lower mortgage rates are expected to boost mortgage applications and refinancing.
Lower mortgage rates are expected to increase mortgage applications and refinancing, positively impacting RKT.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
UWM Holdings Corp. (UWMC) shares increased by 4.5% due to the positive impact of falling mortgage rates on the mortgage market.
The drop in mortgage rates is expected to benefit the mortgage market, leading to gains in UWMC.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The SPDR Homebuilders ETF (XHB) climbed 1.6% as lower mortgage rates are expected to boost home construction and sales.
Lower mortgage rates are likely to increase home construction and sales, positively impacting XHB.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80