US homebuilders, real estate stocks jump on rate-cut bets

Iron Mountain

16/07/2024 17:02

** Interest rate-sensitive homebuilders and real estate
stocks rise, with PHLX Housing Index  .HGX  gaining 3.5% to
touch its highest level since April 1
        ** Markets are pricing in higher chances for a rate cut
by the Federal Reserve in September; slashing interest rates
leads to a decline in mortgage rates, benefiting homebuilders
    ** Top gainers for the HGX index include LGI Homes  LGIH.O ,
M/I Homes  MHO.N , Century Communities  CCS.N  and Pultegroup
 PHM.N , up between 5% and 6.3%
    ** Yield on the U.S. 10-year benchmark Treasury note
 US10YT=RR  falls as much as 6 basis points, hovering at
four-week low    
    ** S&P 500 Real Estate Sector  .SPLRCR  rises 0.24%, hitting
a six-month-high; Weyerhaeuser  WY.N , Iron Mountain  IRM.N  and
Extra Space Storage  EXR.N  rise more than 1.5% each 
    ** Including session's moves, HGX up 12.24% YTD and SPLRCR
up 0.5% YTD, compared with 18.43% gain in S&P 500 index  .SPX 
    

 (Reporting by Nikhil Sharma in Bengaluru)
 ((nikhil.sharma@thomsonreuters.com))