Why Real Estate Stocks Were Hurting Today
Hump Day proved to be insurmountable for real estate stocks. A great many of them saw notable dives in their stock prices, on worries that the chances for the Federal Reserve to cut its key interest rate were fading. From real estate investment trusts (REITs) to brokers to mortgage financiers, stocks across the sector took body blows during the Wednesday trading session.
Among the numerous real estate decliners were Easterly Government Properties (NYSE: DEA), with a nearly 5% drop, accompanied by fellow REITs Vici Properties (NYSE: VICI) and Kilroy Realty (NYSE: KRC) falling by a respective 6% and 7%. Transaction platform operator Opendoor Technologies (NASDAQ: OPEN) tumbled even more dramatically, losing nearly 11% of its value.
More than most economic sectors, real estate is highly dependent on central bank interest rates. They not only affect the cost of mortgages for home buyers, but also impact developers looking to finance new projects.
Source Fool.com
