Mortgage Rates Make Dramatic U-Turn, Freezing Homebuyers: Applications Fall 5% As Markets Rethink Fed Policy
Portfolio Pulse from Piero Cingari
A sharp increase in mortgage rates has led to a significant drop in U.S. mortgage applications, as the market reacts to a strong jobs report and rising Treasury yields. Mortgage-linked stocks, including the VanEck Mortgage REIT Income ETF (MORT) and iShares Residential and Multisector Real Estate ETF (REZ), have declined as a result.
October 09, 2024 | 12:59 pm
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NEGATIVE IMPACT
The VanEck Mortgage REIT Income ETF (MORT) dropped nearly 5% last week and is down an additional 0.8% this week due to rising bond yields and mortgage rates.
The rise in Treasury yields and mortgage rates has negatively impacted mortgage-linked stocks like MORT, leading to a decline in its value. The strong jobs report has shifted market expectations, affecting MORT's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The iShares Residential and Multisector Real Estate ETF (REZ) slid almost 3% last week and has fallen another 1% this week, pressured by rising bond yields and mortgage rates.
REZ has been affected by the increase in Treasury yields and mortgage rates, which has led to a decrease in its value. The market's reaction to the strong jobs report has further influenced REZ's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80