30-Year Mortgage Rates Hit 15-Month Low, But Applications Pull Back After Recent Spikes: Real Estate Stocks React Wednesday (CORRECTED)
Portfolio Pulse from Piero Cingari
Mortgage rates have hit a 15-month low, but mortgage applications have decreased. The real estate sector, tracked by the XLRE ETF, saw gains, with CBRE and Crown Castle among top performers. Mortgage-sensitive stocks like Redfin and Zillow also saw slight increases.

August 21, 2024 | 1:28 pm
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POSITIVE IMPACT
CBRE Group, Inc. shares increased by 1.1% as part of the broader real estate sector gains due to lower mortgage rates.
CBRE benefited from the overall positive sentiment in the real estate sector due to declining mortgage rates.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Crown Castle Inc. shares rose by 0.9% as part of the real estate sector's positive reaction to lower mortgage rates.
Crown Castle's stock price increased due to the positive impact of lower mortgage rates on the real estate sector.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Healthcare Realty Trust Inc. shares increased by 1.3%, reflecting gains in the real estate sector.
HR's stock price rose as part of the broader real estate sector's positive reaction to lower mortgage rates.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Redfin Corp. shares increased by 1.2%, reflecting gains in mortgage-sensitive stocks due to lower mortgage rates.
RDFN's stock price rose as part of the positive impact of lower mortgage rates on mortgage-sensitive stocks.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Sabra Health Care REIT, Inc. shares rose by 1.1%, benefiting from the positive sentiment in the real estate sector.
SBRA's stock price increased due to the overall positive impact of lower mortgage rates on the real estate sector.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Universal Health Realty Income Trust shares surged by 13%, marking a significant gain within the real estate sector.
UHT experienced a significant price increase, likely due to strong investor interest in the real estate sector.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
The Real Estate Select Sector SPDR Fund (XLRE) saw a 0.3% increase, reaching its highest level since September 2022, driven by lower mortgage rates.
The decrease in mortgage rates positively impacted the real estate sector, leading to gains in the XLRE ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Zillow Group Inc. shares rose by 0.2%, showing a modest gain among mortgage-sensitive stocks.
ZG's stock price saw a slight increase, reflecting the overall positive sentiment in mortgage-sensitive stocks.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
The iShares Residential and Multisector Real Estate ETF (REZ) remained flat despite reaching its highest level since mid-September 2022.
Despite the positive environment, REZ ETF remained flat, indicating a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60