The economic data surrounding the housing market has been disappointing lately. New home starts are down, sales are light, and mortgage origination volume has collapsed. While these trends have been bad news for mortgage real estate investment trusts (REITs) and mortgage originators, what do they mean for single-family rental REITs like Invitation Homes (NYSE: INVH)?

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The housing market is already in recession and has been since midsummer, according to the National Association of Home Builders, which publishes the Housing Market Index with Wells Fargo. This recession could have been triggered by the combination of rising interest rates and elevated home prices. Earlier in the COVID-19 pandemic, a large fraction of homebuyers were people looking to move out of densely populated cities, which led to a bull market in housing in other markets, especially in the Southwest and Mountain states. 

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Source Fool.com