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Gian Lorenzo Ferretti PhotographyReal Estate Weekly Outlook U.S. equity markets notched another set of record highs this week while benchmark interest retreated from three-month highs as investors parsed decent PCE inflation data and upbeat corporate earnings reports. Investors breathed a “sigh of relief” after PCE Price Index data wasn’t the Fed-spooking setback that some feared following lukewarm CPI and PPI reports earlier this month. Excluding the lagging housing inflation component which continues to capture “ghosts of inflation past,” Core PCE posted an annual increase of just 1.5% in January – below the Fed’s 2% inflation objective. Hoya Capital Posting gains for the 16th time in the past 18 weeks, the S&P 500 advanced another 1.0% this week. The gains were relatively broad-based across market-cap tiers this week, with the Mid-Cap 400 rallying 1.9% and the Small-Cap 600 gaining 1.2%. The tech-heavy Nasdaq 100 continued its unrelenting run with gains of another 2%. Real estate equities were among the leaders this week as an encouraging REIT earnings season concluded with another generally strong slate of reports. Led by tech-focused and cannabis REITs, the Equity REIT Index finished higher by 2.1% on the week, with 15-of-18 property sectors in positive territory, while the Mortgage REIT Index gained 1.9%. Homebuilders rallied more than 3% on housing market data showing that inventory levels remain near historic lows despite still-sluggish sales activity. Hoya Capital After climbing to three-month highs in mid-February following the warmer-than-expected CPI and PPI reports, benchmark interest rates declined for a second-straight week on the heels of a relatively soft slate of economic data offset, which offset another leg higher for commodities prices. The 10-Year Treasury Yield retreated by 8 basis points this week to 4.18% – down from recent closing highs of 4.33%. The policy-sensitive 2-Year Treasury Yield declined to 4.53% – down from recent highs of 4.74%. The retreat in rates came despite a jump in WTI Crude Oil prices to the highest levels in four months. WTI futures breached $80/barrel for the first time since November ahead of a closely-watched OPEC+ decision on production cuts. Swaps markets are now pricing in 3.3 rate cuts this year – which now roughly matches the mid …
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