Real estate stocks rise and mortgage market indicators are positive
The iShares US Real Estate Fund (IYR) invests in the real estate sector in the US (SPY). It fell 0.55% on July 8, despite positive news from the mortgage market. However, real estate stocks like DR Horton (DHI), PulteGroup (PHM), and Ventas (VTR) rose 1.74%, 0.55%, and 0.42%, respectively, at the close of trade on August 19.
Mortgage applications rose by 3.6%
The MBA (Mortgage Bankers’ Association) in the US came out with the August 19 release of its Weekly Applications Survey. The index is a leading indicator of housing and mortgage finance activity in the US. The index values are calculated with the week of March 16, 1990, as the base.
In the US (IVV), mortgage applications for purchases and refinances rose by 3.6% for the week ending August 14, compared to the previous week. Mortgage applications for purchases were down by 1%. However, applications for refinances were up by a good 7%.
Low interest rates boost demand for mortgages
The rising demand for mortgage loans was boosted by lower interest rates. For example, the average rate for a 30-year mortgage with conforming balances was down to 4.11%, compared to 4.13% in the previous week.
While US fundamentals continue to strengthen, there was a key indicator release in Russia. Let’s take a look in the next article.