XLRE Nov 2024 45.000 call
- Yahoo Finance Video
Interest rate cuts could 'dramatically increase' home prices
Housing starts and building permits data for May came in below expectations as mortgage rates continue to remain high. Pulte Capital CEO Bill Pulte and S&P Global Ratings Homebuilders Director Maurice Austin join Morning Brief to discuss the state of the housing market and its relationship to ongoing rate pressures. "I think it's a little bit of a speed bump. The housing market is very strong. It continues to be very strong," Pulte explains. He notes that big home builders — such as PulteGroup (PHM), which his family originally founded — are in a good position as they "have a balance sheet, have access to the mortgage bond market and, frankly, are taking market share right now." As the market awaits an interest rate cut from the Federal Reserve, Pulte adds that a cut will "dramatically increase" the price of homes. With more people being able to afford mortgages, demand could skyrocket, creating an affordability issue. Austin adds, "What we've seen is the level of sales incentives remain elevated, and they will continue to be so as long as rates stay higher for longer, which ultimately could lead to negative profitability on the homebuilder side." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl
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S&P 500 and Nasdaq, Boeing, recession warnings: Market Domination Overtime
All three of the major US stock market indexes (^GSPC, ^DJI, ^IXIC) all closed Tuesday's session in the green in the middle of this holiday-shortened trading week. The S&P 500 and Nasdaq Composite continue to add to the growing list of record highs in 2024. Outgoing Boeing CEO David Calhoun (BA) testified before a US Senate panel addressing safety concerns within the company. Calhoun stood before families of victims from previous incidents involving Boeing and apologized to them directly. For more expert insight and the latest market action, click here. This post was written by Nicholas Jacobino
- Yahoo Finance Video
There is a 'real disconnect' in CRE, Hines Global CIO says
Real estate capital markets have been under pressure globally, while the direction of interest rates in the US remains more uncertain as compared to the Federal Reserve's global central bank counterparts. Joining Asking for a Trend to discuss the evolving real estate environment is David Steinbach, Hines Global Chief Investment Officer. Steinbach notes that the real estate sector had experienced 40 years of declining interest rates, with many financial markets becoming "deeply embedded" in this dynamic. However, the shift towards the current interest rate environment represents a transition from a "beta to alpha" environment, calling today's landscape "a different sport" that requires more effort. Steinbach highlights downtown investments and transit-oriented investments as promising opportunities, also touching on the state of commercial real estate. Internationally, he identifies Europe, India, and Japan as attractive markets with high demand in the real estate sector. "Real estate is becoming more of a service, and so it's about what you're doing for the customer, the tenant. That really is moving the needle now more than ever," Steinbach told Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Angel Smith
