La vendita allo scoperto per iShares Trust iShares Mortgage Real Estate ETF dà agli investitori un'idea del grado in cui gli investitori stanno scommettendo sul declino delle azioni di iShares Trust iShares Mortgage Real Estate ETF. I dati relativi alle vendite allo scoperto vengono aggiornati ogni due settimane.

iShares Trust iShares Mortgage Real Estate ETF (BATS:REM), Report sulle vendite allo scoperto

iShares Trust iShares Mortgage Real Estate ETF

iShares Mortgage Real Estate Capped ETF

Financial Services

The Fund seeks to track the investment results of the S&P North American Natural Resources Sector Index (the Underlying Index), which measures the performance of U.S.-traded stocks of natural resource-related companies in the U.S. and Canada, as determined by S&P Dow Jones Indices LLC (the Index Provider or SPDJI). The Underlying Index includes companies that are classified under the GICS energy and materials sectors, excluding the chemicals industry, and steel sub-industry. The Underlying Index includes large-, mid- and small-capitalization companies and may change over time. As of March 31, 2024, a significant portion of the Underlying Index is represented by securities of companies in the energy, materials and natural resources industries or sectors. The components of the Underlying Index are likely to change over time.

Annaly Capital Management Inc

Starwood Property Trust Inc

Rithm Capital Corp.

Blackstone Mortgage Trust Inc

Arbor Realty Trust Inc

Apollo Commercial Real Estate Finance Inc

Ready Capital Corp

Two Harbors Investment Reit Corp

Ladder Capital Corp.

Pennymac Mortgage Investment

iShares Mortgage Real Estate ETF

Remedent Inc

Atlas Salt Inc

VanEck Rare Earth and Strategic Metals ETF

REMY COINTREAU SA ORD by Remy Cointreau SA

Remy Cointreau

REMY COINTREAU UNSP/ADR by Remy Cointreau SA

Welcome to this month's Easy Income Portfolio update — or, as we've been calling it around here, the bouncy portfolio.
Over the last month, prices have done their fair share of hopping around like a rabbit on a trampoline. But while the net asset values have jiggled and jumped, the income has stayed rock solid. We haven't seen even a whisper of volatility in the actual cash coming into the portfolio.
&nbsp;In fact, thanks to the recent markdowns, new investors can now lock in higher yields than they could just a few weeks ago. If you're sitting on the sidelines, now might be one of the best moments all year to hop in.
Let's talk about what caused all this bouncing. If you've been paying attention, you already know the culprit: Trump's &#8220;Liberation Day&#8221; surprise.
The administration came out with a tariff regime so aggressive, so far-reaching, that it stunned even the most cynical market watchers. Entire continents got slapped. Allies, adversaries, neutrals — it didn't matter. The initial blast cratered markets in Asia, crushed European stocks, and sent the U.S. indexes into a tailspin.
Bond markets, which normally play the role of the boring grown-up in times like this, panicked just as much. And unlike the old days, Treasuries failed to act as a safe haven. In fact, they dropped hard.
The volatility in the bond and stock markets is being driven by a rare convergence of political, macroeconomic, and technical factors.
First and foremost is policy risk. The sudden imposition of sweeping tariffs has upended global trade expectations and injected deep uncertainty into earnings forecasts for multinational corporations.
Markets hate uncertainty, and what they received from the administration was a heaping serving of it. One moment, a sector is under threat of tariffs; the next, it&#8217;s granted a temporary reprieve. Investors have no clear footing on which to base forward estimates, so they sell first and ask questions later.
Second is geopolitical reverberation.
Allies in Europe and Asia have begun to reassess their economic and defense alignments in light of Washington&#8217;s erratic trade behavior. This has contributed to capital flight from U.S. assets as global investors reallocate toward domestic infrastructure and defense spending within their own regions.
The result: foreign demand for Treasuries and large-cap U.S. stocks is weakening.
Third is the internal dysfunction within the U.S. government. The party that swept all three branches has shown itself unable to govern coherently. Legislative gridlock over budget resolutions, tax packages, and debt ceiling negotiations has led to fears of policy paralysis at a moment when clarity and leadership are sorely needed. That is hardly the backdrop for confidence in financial markets.
On top of that is the technical blow-up in the basis trade. Hedge funds engaging in heavily leveraged trades between Treasury bonds and futures found themselves on the wrong side of price dislocations. As Treasury bonds dropped faster than futures, margin calls were triggered. In a highly levered trade — often levered 50-to-1 or even 100-to-1 — this kind of misalignment is catastrophic.
The only way out was to liquidate positions, which caused further downward pressure on Treasury prices. That panic cascaded into credit markets and added fuel to the equity volatility.
Now, if you're looking for safety and stability, the Easy Income Portfolio has delivered exactly that. No income has been lost. If anything, the dip in prices has juiced forward yields.
You can now put this portfolio to work with a 9.94% yield, and that's not pie-in-the-sky hypothetical — that's what you'd actually receive if you put cash to work in these assets today.
The reason Treasuries have gone soft. Part of it is a fundamental lack of confidence in the U.S. right now. It's not just adversaries pulling back — it's allies too. Tariffs are being perceived not as economic strategy but as outright aggression, and the back-and-forth around negotiations hasn&#8217;t helped.
Add in political dysfunction in Washington — a Congress that can't seem to get out of its own way on budget deals, tax policy, or the debt ceiling — and buyers are simply walking away. And yes, there's been some technical nonsense too, like the infamous basis trade blowing up as overleveraged hedge funds got hit by price distortions between Treasuries and futures. When that trade unwinds, it only adds more fuel to the selling fire.
So what do we do with all this? We go shopping.
First up is InfraCap U.S. Preferred Stock ETF (Ticker: PFFA), run by Jay Hatfield — a guy who knows credit markets like few others. PFFA has dropped 8% over the past month. That's ridiculous. This fund owns high-quality preferreds from utilities, REITs, and banks, and it trades them actively. Unlike index-based preferred ETFs, which sit on their hands, Hatfield's crew looks for price dislocations, buys at a discount, and sells near par. That's how you add alpha in a yield-hunting strategy. The fund's yield is now north of 10%, and that dividend is well covered.
Next up is VanEck BDC Income ETF (Ticker: BIZD). Now, we're picky with BDCs — we only want the ones that have deep relationships with the private equity world. Think Ares Capital, Blue Owl, Golub, FSKKR, Oak Tree. These are firms with access to deal flow, sponsor support, and balance sheets to weather downturns. This ETF only holds 32 positions and is heavily tilted toward the best players in the game. BIZD is down nearly 10% for the month, but the dividend yield is up to 13%. Again, not a typo. Thirteen percent to own some of the most credit-savvy BDCs in the world.
Then there's iShares Mortgage Real Estate ETF (Ticker: REM) — the mortgage play. Spreads on agency mortgages have blown out to their widest levels since 2023, brushing against two standard deviations above the norm. That's opportunity. REM is packed with income monsters like AGNC (Ticker: AGNC), Annaly (NLY, Starwood Property Trust (Ticker: STWD), and Ladder Capital (STWD). Barry Sternlicht&#8217;s Starwood vehicle in particular is now yielding 11%, and it's diversified with exposure to medical office, hotels, infrastructure finance, and even Europe. The same goes for Ladder, which is arguably the most conservatively capitalized commercial mortgage REIT in the country.
We've also got a supporting cast of private equity-backed commercial mortgage REITs like Blackstone Mortgage Trust, Apollo Commercial Real Estate Finance, and KKR Real Estate Finance Trust. These are the types of names that will not only survive a volatile year — they'll thrive in it. They&#8217;re stepping in as lenders of last resort in an environment where most regional banks are on defense.
The result? Despite a 7% drawdown in total return terms over the past month, the Easy Income Portfolio is still ahead of Treasuries, ahead of the S&amp;P 500, and ahead of most income-oriented funds. The income continues to show up in your account — month in, month out — and the best part is you now have the opportunity to buy in even cheaper than you could a month ago.
What's the macro backdrop from here? Mild stagflation is probably the base case. Tariffs don't repatriate manufacturing. They raise prices and slow growth. So we expect a bit of a drag on GDP, a nudge higher on inflation, and likely a few rate cuts before the year is done. As the Fed pivots, bonds will find a floor. When that happens, mark my words — the very same assets you can buy today at fire sale prices will trade 10–15% higher. And you'll still be clipping a 10% yield.
That's this month's update. Keep calm, stay focused, and be a buyer on the big red days. PFFA, BIZD, and REM are the names to add right now. We'll talk again next month, and until then — let volatility be your friend.

Opinion

AGNC

BIZD

PFFA

iShares FTSE NAREIT Mortgage PLUS Capped Index Fund

STWD

Easy Income Portfolio: April 2025 Update

Shares of Starwood Property Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STWD#NYSE">STWD</a>) were trading lower on Friday, even as the company&#8217;s affiliate, Starwood Capital Group, <a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/n44645160/starwood-capital-group-acquires-11-master-planned-communities-in-texas-from-hines" rel="noreferrer noopener">announced a real estate transaction</a>.
A joint venture between Starwood Capital and Land Strategies Management (operating as Starwood Land) has completed the acquisition of a portfolio of 11 master-planned communities in Texas from global real estate manager Hines. The deal is valued at approximately $800 million.
The acquired portfolio includes more than 16,000 residential lots and over 600 acres of commercial land across high-growth housing markets: Dallas, Houston, and Austin.
The developments are in advanced stages, with significant infrastructure already completed and active lot sales underway to more than 30 homebuilders.
Also Read: <a target="_blank" href="https://www.benzinga.com/trading-ideas/technicals/25/04/44648530/stock-of-the-day-is-best-buy-about-to-reverse" rel="noreferrer noopener">Stock Of The Day: Is Best Buy About To Reverse?</a>
Communities involved in the transaction include Wildflower Ranch, Creekside, Aster Park, and Furst Ranch in Dallas; Brookewater and Wildrye in Houston; and Mirador in Austin.
&#8220;This is a high-quality portfolio created by a first-class investment manager and developer, and we plan to build upon the excellent work Hines has completed to-date and bring the development vision for these communities to fruition,&#8221; said&nbsp;Mike Moser, CEO of Starwood Land.&nbsp;
Anthony Murphy, Managing Director at Starwood Capital, added that the acquisition aligns with the firm&#8217;s strategy to invest in &#8220;mature,&#8221; well-positioned communities in the nation&#8217;s top housing markets.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, STWD stock has lost over 6% in the past year. Investors can gain exposure to the stock via iShares Trust iShares Mortgage Real Estate ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/REM#BATS">REM</a>).
Price Action: STWD shares are trading lower by 3.91% to $18.45 at last check Friday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44645681/jpmorgan-raises-recession-risk-to-60-as-largest-us-tax-hike-in-60-years-hits-global-economy" target="_blank" rel="noreferrer noopener">JPMorgan Raises Recession Risk To 60% As &#8216;Largest US Tax Hike&#8217; In 60 Years Hits Global Economy</a></li>
</ul>
Photo via Shutterstock.

Equities

News

Movers

General

What's Going On With Starwood Property Trust Stock On Friday?

The EZ Income Portfolio keeps doing exactly what we designed it to do—throwing off hefty streams of income while avoiding the rollercoaster ride that comes with chasing hot growth stocks. The past month reminded us once again why boring is beautiful when you're in the income game.
Bond Market Update: Rates Steady, but Credit Matters Treasuries bounced around in March as the bond market continues its rate cut guessing game. The Fed's recent posturing still hints at potential cuts later this year, but sticky inflation numbers keep pushing out expectations. The 10-year Treasury is hanging around the 4.2% range, down from the October peaks but still offering yields we haven't seen in decades.
For us, the critical takeaway is that these higher-for-longer yields offer a fat tailwind for bond funds and credit-sensitive investments—provided you stay away from duration traps and avoid the landmines in the commercial real estate lending market.
High-Yield Credit: Spreads Still Tight, but Cracks Emerging High yield credit spreads have drifted slightly wider but remain historically tight. The ICE BofA High Yield Index sits around 330 basis points over Treasuries—tight by any standard. That's pricing in almost no risk of recession, which feels a bit rich given some recent bank earnings pointing to credit deterioration.
We're not running for the hills, but we're staying selective. Defaults are ticking up in the lower tiers, especially in sectors like retail, media, and over-levered real estate. If you're in junk, stick with senior loans or actively managed funds that know how to dodge the zombies.
Private Credit and BDCs: Only the Strong Survive Private credit remains the belle of the ball, attracting waves of capital looking to replace low-yielding bonds. That's good for business development companies (BDCs), but as I've been saying for years, not all BDCs are created equal.
If you're buying BDCs, own the ones tied to the big boys—private equity and credit firms that know how to structure deals, manage risk, and raise cheap capital. Names like BANX fit that bill perfectly. They're built to survive credit cycles, not just ride the boom times. I'm still avoiding the yield-chasing BDCs loaded up on second-lien garbage.
Portfolio Ticker Update:
Preferred ETF (Ticker: PFFA) Preferred caught a nice tailwind from falling yields in early March, but it's been range-bound since. Banks are stabilizing, which helps. You're getting paid north of 8%, so patience pays.
Special Opportunities Fund (Ticker: SPE) One of my favorite quirky closed-end funds. It's chugging along, trading at a nice discount. Income plus potential upside when the market rediscovers CEFs.
Metaurus ETNs (Ticker: MTBA) Still quietly printing income. This thing's quirky, but it's working—tax-efficient income for those of us who like clipping coupons.
Mortgage REIT ETF (Ticker: REM) Mortgage REITs are a minefield, but REM is diversified. You're paid well to take the risk but watch for any signs of credit stress in mREIT holdings.
CEF ETF (Ticker: CEFS) Discount hunting still works, and CEFS gives us diversified exposure to discounted closed-end funds. No fireworks, but it's steady.
BondBloxx BB-rated (Ticker: XBB) One of my favorite bond ETFs. BB-rated junk is still the sweet spot—high income without diving into the deep junk pool.
Senior Loans (Ticker: SRLN) Senior loans are the right place to hide if credit turns. Floating rates help, and you're senior in the stack. No changes here—still collecting.
Energy Infrastructure (Ticker: TYG) Energy midstream still pays. Oil volatility doesn't matter much when you're collecting tolls. Big yield, steady cash flow.
Financial Income (Ticker: FINS) Financials had a solid month as fears of a banking meltdown eased. Spreads are stable, and you're paid handsomely here.
Aberdeen Asia-Pacific Income (Ticker: FAX) Asian bonds are bouncing with China stimulus chatter. Not without risk, but you're paid well to wait.
Dorchester Minerals (Ticker DMLP) &nbsp;Still my favorite royalty play. These guys keep sending checks, and oil/gas prices are holding up. No debt, just cash flow.
Stone Castle Financial (Ticker: BANX) Love this one. Tied to private credit and bank preferreds. Doing exactly what we own it for—producing income with low volatility.
Nuveen Real Asset Income (Ticker: JRI) Real assets are steady. REITs are out of favor, but infrastructure and utilities keep the dividends flowing.
BDC ETF (Ticker: BIZD) Broad exposure to BDCs. We're cautious here—BDC valuations are rich, but income is steady. Not adding, not selling.
High Yield Income ETF( Ticker: HYIN) Solid performer. Higher yields help, and it's done what we expected—deliver income without blowing us up.
<hr class="wp-block-separator has-alpha-channel-opacity" />
Final Thoughts: Clip Coupons, Stay Boring, and Get Paid The market's still too focused on chasing AI unicorns and guessing the next rate cut. Meanwhile, we're sitting here collecting checks every month, sleeping well at night.
This portfolio isn't sexy, but it works. Diversification across preferreds, credit, energy royalties, and CEFs keeps us steady. There's no reason to get cute right now—stick with income, focus on quality, and make sure your BDCs and credit managers are backed by firms that have been through a few cycles.
As always, if we see any panic in credit markets or the next round of CEF discounts, we'll be ready to buy. Until then, stay boring and stay paid.

BANX

CEFS

Angel Oak Financial Strategies Income Term Trust Common Shares of Beneficial Interest

FINS

HYIN

MTBA

SRLN

Easy Income Portfolio: March 2025 Update - 'Still Clipping Coupons, Still Getting Paid'

This portfolio is designed to do exactly what it says it will. The Easy Income portfolio will deliver a regular and consistent stream of income into your account on a regular basis.
Some of the investments pay monthly and others quarterly. The cash can either be the income you need for your dream retirement or reinvested to help compound your cash at high rates of return, no matter what the stock market does from day to day.
The Easy Income Portfolio is for you if:
<ul>
<li>You want a portion of your portfolio in a collection of assets that delivers a regular stream of cash that can be used to provide steady returns without constant surveillance and monitoring. </li>
<li>You are closing in on retirement and want a portfolio that can deliver returns that can push you over the finish line without any need to try and become the next Jesse Livermore. </li>
<li>You are retired and you want your money to work as hard as you have your whole life while you spend time doing the things you love to do. </li>
<li>You are tired of worrying about every economic announcement, Fed move, and Wall Street scam. </li>
<li>You are tired of worrying about how much inflation will do to your nest egg. The Easy Income Portfolio should be a large part of your investment portfolio.</li>
</ul>
You can quit worrying about finding the next big thing. The Easy Income portfolio will benefit from every major social, demographic, and economic trend that is shaping our future.
The income will come from companies that are on the cutting edge of technological advances like Artificial Intelligence and Quantum Computing.
We have a housing shortage in the United States, and solving it will put a lot of money in your pocket month in and month out as an Easy Income Portfolio Investor.
We have too many banks in the United States. The industry has been consolidating for 30 years and will continue to do so for the next 30. Financing this trend will be a regular source of income for this portfolio.
Technological advancements will require an enormous amount of energy. Supplying that energy will put large amounts of cash in your pocket on a regular basis.
Slowly but surely, the world will turn to renewable energy as the leading source of energy. Financing this transition will be wildly profitable for investors using the Easy Income Approach.
A portion of your capital will be managed by the best fixed income investor of the last decade and send cash into your account no matter what happens in the stock market.
The recovery in commercial real estate is going to last for a long time and generate a lot of cash you can use to compound your wealth or maximize your enjoyment of retirement.
It&#8217;s time your money works not just as hard as you do, but as smart as you. The Easy Income portfolio will help you do exactly that.
Portfolio Update
Since this is the first edition of the update, let&#8217;s go over some ground rules:
<ol>
<li>Initially, you should fund the portfolio in equal dollar amounts. </li>
<li>The different securities have varying degrees of correlation with each other. </li>
<li>Some will zig in response to a news announcement or economic event, and others will zag.</li>
<li>Some will love inflation and others will hate it. </li>
<li>Strong economic growth will cause some of the securities to move higher while others flatline or move lower. </li>
<li>The opposite will be the case when the economy weakens.</li>
</ol>
If you are investing with the intention of collecting the income or putting in a lump sum of cash, you can stop here.
If you are investing for total return and planning on adding cash to the Easy Income Portfolio, add to the positions that have been down the most over the past month. The high cash flows and diverse income streams will do all the heavy lifting going forward.
This month, the honors go to:
<ol>
<li>Dorchester Minerals (Ticker: DMLP) </li>
<li>iShares Mortgage Real Estate ETF (Ticker: REM) </li>
<li>SPDR Blackstone Senior Loan ETF (Ticker: SRLN)</li>
</ol>
Dorchester Minerals is an oil and gas royalty trust that owns properties in 28 states. It collects payment for every drop of oil and natural gas pumped out of its land by major oil companies. Even with the current low price of oil and natural gas, Dorchester Minerals is yielding almost 10%, and that will go up as energy prices increase.
REM is tracking sideways this year as the portfolio is a balance of residential and commercial real estate loan portfolios. The combined yield of the lenders held by the ETF will deliver a consistent stream of cash into your account. Continued rate cuts by the Federal Reserve will lift the net asset value of the lenders held by the ETF as well.
The Blackstone Senior Loan Fund owns a portfolio of loans to middle-market companies and is overseen by one of the best alternative asset managers in the history of financial markets. Most of the loans in the portfolio have floating interest rates, so if we should see any upward pressure on rates from economic news or geopolitics, this fund will act as a hedge. If we do not see any moves up, it is just a source of cash as the fund yields about 9%.
The recent economic news shows that the economy is growing while inflation moderates. For most, that is good news for almost all our holdings, but that is subject to change based on a wide range of possible events.
No matter what happens, the Easy Income Portfolio will keep producing large streams of cash, and the diversification of the assets we hold should help offset market volatility.

DMLP

Welcome to the Easy Income Portfolio

A recent surge in mortgage rates is weighing heavily on homebuyers, causing a sharp and sustained drop in mortgage <a href="https://www.benzinga.com/money/mortgages">applications across the U.S. </a>
This downturn marks the fourth consecutive weekly decline, signaling growing pressure from elevated borrowing costs.
<h3 class="wp-block-heading">Mortgage Applications Plummet for Fourth Straight Week</h3>
For the week ending Oct. 18, mortgage applications in the U.S. tumbled by 6.7%, extending a 17% plunge from the previous week, according to data shared Wednesday by the Mortgage Bankers Association.
This represents the fourth straight week of contraction in mortgage demand, as the recent uptick in interest rates to two-month highs has increasingly discouraged potential buyers from entering the housing market.
Notably, applications to refinance existing home loans, which tend to be more sensitive to short-term interest rate changes, dropped 8.5% for the week, extending a prior 26% plunge. Applications for new home purchases also declined by 5%, reflecting a broader weakness in housing market activity.
The drop in activity coincides with a significant rise in key interest rates, driven by robust economic data and market expectations of a less accommodative stance by the Federal Reserve for the rest of 2024.
<h3 class="wp-block-heading">Mortgage Rates Remain Elevated</h3>
The average interest rate for a 30-year fixed-rate mortgage with conforming loan balances (up to $766,550) remained stable at 6.52%, close to its two-month high.
For larger loans (jumbo mortgages, which cover amounts above $766,550), the rate edged down slightly to 6.73%, a marginal drop of 3 basis points from the previous week.
Last week, Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, highlighted, &#8220;Demand is holding up to an extent for prospective first-time buyers. The recent uptick in rates has put a damper on applications.&#8221;
Mortgage rates have surged in tandem with rising long-term Treasury yields, which had been steadily climbing before leveling off last week.
The rising trend in Treasury yields resumed this week, further clouding the outlook for mortgage demand. 
Yields on 30-year Treasury bonds have jumped by over 10 basis points to 4.5% as of Wednesday. Given that Treasury yields serve as a key benchmark for mortgage rates, any further increases could intensify pressure on already weakened mortgage demand.
<h3 class="wp-block-heading">Impact On Mortgage-Related Stocks</h3>
The cooling of the housing market is also evident in the declining performance of mortgage-related stocks.
Both the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>) and the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) have seen significant declines, falling for two consecutive days this week. 
Since their highs in September, both ETFs have shed about 8-9% in value, underscoring the negative impact of declining demand in the market performance of mortgage real estate investment trusts (REITs).
The popular iShares 20+ Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NYSE">TLT</a>), which tracks long-term Treasury bonds, has dropped 2% for the week and is down 9.5% from its late September levels. 
Looking ahead, market participants remain focused on the Federal Reserve&#8217;s next move. 
The CME FedWatch tool, which tracks market-implied expectations for Federal Reserve policy, shows an 87% chance that the central bank will cut interest rates by 25 basis points at its next meeting on Nov. 7.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/bonds/24/10/41455678/gold-on-track-for-best-year-since-1979-veteran-investor-says-sell-bonds-buy-gold">Gold On Track For Best Year Since 1979: Veteran Investor Says &#8216;Sell Bonds, Buy Gold&#8217;</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Macro Economic Events

REIT

Sector ETFs

Bonds

Treasuries

Econ #s

Economics

Federal Reserve

ETFs

Real Estate

MORT

iShares Trust Barclays 20+ Year Treasury Bond Fund

Mortgage Applications Fall For Fourth Straight Week As High Rates Squeeze Homebuyers

Mortgage rates continue to <a href="https://www.benzinga.com/news/24/09/40921345/mortgage-rates-drop-to-2-year-low-refinancing-hits-fastest-pace-since-2022-rocket-lendingtree-among">fall toward 6%</a> as the housing market absorbs the Federal Reserve&#8217;s 0.5% rate cut on Wednesday, raising demand for refinancing and buying, stated Freddie Mac.
The average rate for a 30-year fixed mortgage fell to 6.09% on Thursday, down from 6.2% a week ago and 7.19% a year earlier, according to Freddie Mac&#8217;s Primary Market Mortgage Survey.
The rate for a 15-year fixed mortgage declined to 5.15%, down from 5.27% a week ago and 6.54% a year earlier.
"Mortgage rates continued declining towards the six percent mark, reviving purchase and refinance demand for many consumers," said Sam Khater, Freddie Mac's chief economist.
Read Also:<a href="https://www.benzinga.com/top-stories/24/09/40923657/single-family-housing-starts-are-up-as-mortgage-rates-decline-fed-eyes-lower-rates"> Single-Family Housing Starts Are Up As Mortgage Rates Decline, Fed Eyes Lower Rates</a>
"While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market. Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but we expect rates to fall further, sparking more housing activity."
Exchange-traded funds that hold mortgage stocks are sensitive to mortgage rates because they primarily invest in mortgage-backed securities (MBS) or mortgage-related assets, which are directly impacted by changes in interest rates.
<ul>
<li>IShares Mortgage Real Estate ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/REM#BATS">REM</a>) rose 0.82%</li>
<li>VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) went up 0.74%</li>
<li>IShares MBS ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBB#NASDAQ">MBB</a>) ticked up 0.06%</li>
</ul>
IShares Mortgage Real Estate ETF holds 15.2% of the REIT, Annaly Capital Management, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NLY#NYSE">NLY</a>), while VanEck Mortgage REIT Income ETF holds 11.1%.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/24/09/40817001/mortgage-rates-fall-to-lowest-level-since-february-2023">Mortgage Rates Fall To Lowest Level Since February 2023</a></li>
</ul>
Photo: Shutterstock

FMCC

Mortgage Rates Near 6%, Demand Increases For Refinancing, Purchases

Mortgage rates fell to their lowest levels in over a year this week, spurred by rising market expectations of interest rate cuts by the Federal Reserve, bringing some much-needed <a href="https://www.benzinga.com/topic/real-estate-investing">relief to U.S. homebuyers.</a>
As of Aug. 7, the average 30-year fixed mortgage rate dropped by 26 basis points from the previous week, settling at 6.47%. This is the lowest rate since late May 2023, according to Freddie Mac data released on Thursday.
Similarly, the average 15-year fixed mortgage rate fell by 36 basis points from the previous week to 5.63%, the lowest level since April 2023.
&#8220;The decline in mortgage rates does increase prospective homebuyers' purchasing power and should begin to pique their interest in making a move,&#8221; Freddie Mac highlighted.
Additionally, this decrease in rates is already benefiting existing homeowners. The refinancing share of mortgage applications has climbed to nearly 42%, the highest since March 2022.
Read Also: <a href="https://www.benzinga.com/money/how-to-invest-in-real-estate">How To Invest in Real Estate In 2024</a>
<h3 class="wp-block-heading">Goldman Sachs Sees Home Prices Rising: Fed Rate Cuts Likely to Fuel Appreciation</h3>
&#8220;Bad news is (likely) good news for home price appreciation,&#8221; wrote Goldman Sachs analyst Vinay Viswanathan in a note Thursday, highlighting the investment bank&#8217;s optimistic outlook for the housing market.
Goldman Sachs has upwardly revised its forecasts for home price appreciation (HPA) in 2024 and 2025. The bank now expects full-year 2024 HPA to reach 4.5% and 2025 HPA to come in at 4.4%. These projections are notably higher than their previous forecasts of 4.2% and 3.2%, respectively.
The bullish outlook is underpinned by Goldman Sachs economists&#8217; prediction that the Federal Reserve will implement three rate cuts this year, each by 25 basis points. 
These anticipated cuts are expected to bring the 30-year conforming mortgage rate down to 6.5% by the end of 2024 and 6.1% by the end of 2025. These figures are slightly lower than the bank&#8217;s previous forecasts of 6.6% and 6.3%, respectively.
<h3 class="wp-block-heading">Mortgage-Linked Stocks Rally</h3>
The positive sentiment surrounding the recovery of the property market extended to mortgage-linked stocks. 
The iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>), which tracks stocks exposed to the residential property market, rose 0.6% on Thursday. 
Other sector funds, such as the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) and the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>), saw gains of 0.9% and 0.8%, respectively.
Individual stocks in the mortgage business showed robust performance, with Rocket Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) and UWM Holdings Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) up by 3.3% and 4.5%, respectively.
Shares of companies involved in home construction also experienced a boost. The SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) climbed 1.6%.
Read now: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40259139/tech-stocks-rally-after-5-day-slump-as-recession-panic-eases-nasdaq-100-movers-to-watch-thursday">Tech Stocks Rally After 5-Day Slump As Recession Panic Eases: Nasdaq 100 Movers To Watch Thursday</a></li>
</ul>
Photo: Shutterstock

Analyst Color

Mid Cap

Small Cap

iShares FTSE NAREIT Residential PLUS Capped Index Fund

UWMC

Mortgage Rates Fall To Lowest Level In Over A Year, Ease Pressure On Homebuyers: 'Good News For Home Price Appreciation'

Mortgage applications in the U.S. saw an increase of 1.9% for the week ending May 17, continuing an upward trend following a 0.5% rise the previous week. This marks the third consecutive week of growth in mortgage demand, according to data released Wednesday from the <a href="https://www.benzinga.com/money/best-mortgage-lenders">Mortgage Bankers Association (MBA).</a>
The rise in applications aligns with a decrease in average mortgage rates, which reached a seven-week low due to expectations of lower inflation reducing long-dated Treasury yields.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased by 7 basis points to 7.01% during the week ending May 17, MBA data indicated. This decline, the third in a row, brought mortgage rates to their lowest level in over a month.
The yield on a 30-year Treasury bond, a critical indicator for mortgage rates, dropped by 8 basis points to 4.55% last week, following an inflation report for <a href="https://www.benzinga.com/general/macro-notification/24/05/38880563/disinflation-hopes-reshape-treasury-yields-major-trend-5-bond-etfs-poised-to-rally-on-">April that met expectations. </a>
Refinancing applications, which are highly sensitive to changes in interest rates, surged by 7%, building on a 5% increase the previous week. This significant rise in refinancing applications compensated for a 1% decline in mortgage applications for home purchases, reflecting ongoing challenges such as limited housing supply and intense market competition.
Chart: 30-Year Mortgage Rates Slow In Tandem With 30-Year Treasury Yields
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-1024x495.png" alt="" class="wp-image-349965" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/22081130/image-93.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Mortgage-Linked Stocks On The Rise</h3>
The uptick in mortgage activity and the ease in mortgage rates have positively impacted stocks of mortgage-sensitive real estate firms in recent weeks. 
The iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>) is currently experiencing a five-week winning streak, its longest since January 2023.
Among the top-performing mortgage Real Estate Investment Trusts (REITs) over the past month are TPG RE Finance Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRTX#NYSE">TRTX</a>), Redwood Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>), Invesco Mortgage Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVR#NYSE">IVR</a>), and Arbor Realty Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABR#NYSE">ABR</a>), with gains ranging from 12% to 16%.
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38950144/amc-bonds-hold-gains-after-meme-stock-selloff-is-it-a-better-bet-than-buying-shares">AMC Bonds Hold Gains After Meme Stock Selloff: Is It A Better Bet Than Buying Shares?</a>
Image generated using artificial intelligence via Midjourney.

TRTX

Mortgage Applications Climb For Third Week As 30-Year Interest Rates Drop

As April comes to a close, it&#8217;s time to compile the rankings for the top-performing sector and industry exchange-traded <a href="https://www.benzinga.com/etfs">funds of the month.</a>
Taking a broader look at the stock market, the S&amp;P 500 Index, represented by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), finished April on a downturn, declining by approximately 3%. This marks the end of a five-month streak of gains.
Similarly, the tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), experienced a 3.5% decline.
Among large-cap indices, blue-chip stocks showed slight underperformance, with the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) slipping by 4.5%.
Small-cap stocks, represented by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), plummeted by over 6%, marking their worst performance since October 2023.
Overall, it has been a challenging month for the stock market, primarily due to inflation surprises surpassing expectations. This has led to a recalibration of market expectations regarding potential Federal Reserve rate cuts.
Additionally, complex global geopolitical tensions have emerged, notably between Israel and Iran, alongside the ongoing issue in the Gaza Strip.
May is anticipated to start with a crucial event as investors await the Federal Reserve Open Market Committee <a href="https://www.benzinga.com/general/macro-notification/24/04/38526201/is-hawkish-shift-on-inflation-imminent-wall-street-analysts-traders-brace-for-fed-impa">(FOMC) meeting on Wednesday. </a>
While no interest rate changes are expected, all eyes will be on Fed Chair Jerome Powell&#8216;s remarks to assess the Fed&#8217;s stance in response to recent inflation surprises.
Read also: <a href="https://www.benzinga.com/general/macro-notification/24/04/38491988/federal-reserve-meeting-preview-high-interest-rates-need-more-time-to-work-bank-of-ame">Federal Reserve Meeting Preview: High Interest Rates &#8216;Need More Time To Work,&#8217; Bank of America Says</a>
<h2 class="wp-block-heading">Performance Of Sector ETFs In April 2024</h2>
At the sector level, only the utilities sector managed to avoid losses for the month, rising by 2.1%.
The largest stock contributors to the utilities&#8217; performance in April are NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), The Southern Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SO#NYSE">SO</a>), Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>) and NRG Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) which showed monthly gains between 4% and 8%. 
Energy stocks remained broadly stable, while the other nine S&amp;P 500&#8217;s sectors showcased losses.
Real estate experienced the worst performance, down by over 7%, dragged down by its high sensitivity to interest rates, as Treasury yields increase across the board during the month. 
Following real estate, the technology and healthcare sectors also showed poor performance in April.
<h4 class="wp-block-heading">April&#8217;s Best And Worst Sector ETFs: Utilities Lead, Real Estate Lags</h4>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Sector</th>
<th>April 2024 performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>2.06%</td>
</tr>
<tr>
<td>Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>0.01%</td>
</tr>
<tr>
<td>Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>-1.11%</td>
</tr>
<tr>
<td>Industrials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>-3.23%</td>
</tr>
<tr>
<td>Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>-3.68%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>-3.85%</td>
</tr>
<tr>
<td>Materials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>-4.13%</td>
</tr>
<tr>
<td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>-4.24%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>-4.78%</td>
</tr>
<tr>
<td>Health Care&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>-7.83%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 2:50 p.m. EDT</figcaption></figure>
<h2 class="wp-block-heading">Performance Of Industry ETFs In April 2024</h2>
Based on the industry ETF list provided by BlackRock Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) iShares, only five out of the 25 industries managed to report gains in April. Among them, miners did well across the board, with silver, copper, and gold mining stocks reporting robust gains. 
Standout contributors to the mining industry&#8217;s outperformance in April were Pan American Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAAS#NYSE">PAAS</a>), up over 20%, Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), up 14%, Anglo American plc (OTCPK: AAUKF), up over 40%
Energy producers also managed to end the month in the green.
On the bottom side of the industry rankings, homebuilders, transportation, biotech stocks, digital infrastructure and real estate all report losses between 7% and 9.6% in April.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares MSCI Global Silver and Metals Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLVP#NYSE">SLVP</a>)</td>
<td>12.11%</td>
</tr>
<tr>
<td>iShares Copper and Metals Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>)</td>
<td>9.50%</td>
</tr>
<tr>
<td>iShares MSCI Global Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>)</td>
<td>5.93%</td>
</tr>
<tr>
<td>iShares MSCI Global Metals &amp; Mining Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PICK#NYSE">PICK</a>)</td>
<td>2.81%</td>
</tr>
<tr>
<td>iShares MSCI Global Energy Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FILL#NYSE">FILL</a>)</td>
<td>2.46%</td>
</tr>
<tr>
<td>iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</td>
<td>-1.16%</td>
</tr>
<tr>
<td>iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEO#NYSE">IEO</a>)</td>
<td>-1.37%</td>
</tr>
<tr>
<td>iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>)</td>
<td>-1.66%</td>
</tr>
<tr>
<td>iShares Lithium Miners and Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ILIT#NYSE">ILIT</a>)</td>
<td>-3.30%</td>
</tr>
<tr>
<td>iShares U.S. Broker-Dealers &amp; Securities Exchange ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>)</td>
<td>-3.74%</td>
</tr>
<tr>
<td>iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>)</td>
<td>-3.88%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-4.37%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>)</td>
<td>-4.40%</td>
</tr>
<tr>
<td>iShares U.S. Healthcare Providers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHF#NYSE">IHF</a>)</td>
<td>-4.79%</td>
</tr>
<tr>
<td>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>)</td>
<td>-5.11%</td>
</tr>
<tr>
<td>iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>)</td>
<td>-5.38%</td>
</tr>
<tr>
<td>iShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>)</td>
<td>-5.45%</td>
</tr>
<tr>
<td>iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>)</td>
<td>-5.57%</td>
</tr>
<tr>
<td>iShares U.S. Medical Devices ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHI#NYSE">IHI</a>)</td>
<td>-5.75%</td>
</tr>
<tr>
<td>iShares Global Timber &amp; Forestry ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOOD#NYSE">WOOD</a>)</td>
<td>-6.20%</td>
</tr>
<tr>
<td>iShares Expanded Tech-Software Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGV#NYSE">IGV</a>)</td>
<td>-6.76%</td>
</tr>
<tr>
<td>iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDGT#NYSE">IDGT</a>)</td>
<td>-7.12%</td>
</tr>
<tr>
<td>iShares Biotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NYSE">IBB</a>)</td>
<td>-7.23%</td>
</tr>
<tr>
<td>iShares U.S. Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYT#NYSE">IYT</a>)</td>
<td>-8.34%</td>
</tr>
<tr>
<td>iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>)</td>
<td>-9.60%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 3:15 p.m. EDT</figcaption></figure>
Now read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38497224/ai-data-centers-drive-electricity-demand-goldman-sachs-picks-16-stocks-to-play-the-">AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend</a>
Image generated using artificial intelligence via Midjourney.

Biotech

Large Cap

Market Summary

Broad U.S. Equity ETFs

Specialty ETFs

Health Care

Commodities

Markets

Tech

AAUKF

COPX

SPDR Dow Jones Industrial Average ETF Trust

FILL

iShares Dow Jones US Broker Dealers Index Fund

iShares Dow Jones US Insurance Index Fund

iShares Dow Jones US Regional Banks Index Fund

iShares U.S. Digital Infrastructure and Real Estate ETF

IDGT

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

iShares Dow Jones US Oil Equipment & Services Index Fund

iShares Dow Jones US Pharmaceuticals Index Fund

iShares Dow Jones US Health Care Provides Index Fund

iShares Dow Jones US Medical Devices Index Fund

ILIT

iShares Dow Jones US Aerospace & Defense Index Fund

iShares Dow Jones US Homenstruction Index Fund

iShares Trust Dow Jones US Financial Services Index Fund

iShares Dow Jones Transportation Average Index Fund

PAAS

PICK

RING

SLVP

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

iShares S&P Global Timber & Forestry Index Fund

WOOD

XLRE

Select Sector SPDR-Consumer Discretionary

April Showers On Wall Street:  Miners, Utilities Emerge As Bright Spots In Gloomy Market

The U.S. housing market faces increased pressure as the average contract interest rate for 30-year fixed-rate mortgages rose by seven basis points to 6.87%, a peak not seen in <a href="https://www.benzinga.com/real-estate">the past two months.</a>
This rise in mortgage rates, as reported by the Mortgage Bankers Association (MBA) on Wednesday, is a direct consequence of a slew of robust economic data and stickier-than-expected inflation, which have pushed long-term benchmark Treasury yields higher.
Amid these rising rates, the mortgage sector has experienced a downturn in activity, indicating the rising cost of borrowing for prospective homeowners. This was evidenced by a 2.3% decrease in mortgage applications, a notable pullback from the 3.7% gain observed in the preceding week. 
Chart: Mortgage Rates Saw A New Uptick Last Week
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14092951/image-25-1024x495.png" alt="" class="wp-image-215751" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14092951/image-25-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14092951/image-25-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14092951/image-25-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14092951/image-25-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14092951/image-25.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">January&#8217;s Inflation Surprised To The Upside, Yields Rise</h2>
In January, the U.S. annual inflation rate was 3.1%, slowing down from December&#8217;s 3.4% print but coming in above expectations of 2.9%. The monthly rise in the Consumer Price Index (CPI) basket was also higher than expected (0.3% vs. 0.2%).
Particularly alarming was the core inflation rate, excluding volatile energy and food prices, which held firm at 3.9% year-on-year in January, surpassing the anticipated 3.7%.
Read also: <a href="https://www.benzinga.com/markets/equities/24/02/37105400/magnificent-7-lose-more-than-250-billion-as-blazing-inflation-data-triggers-market-sell-off">Magnificent 7 Lose More Than $250 Billion As Blazing Inflation Data Triggers Market Sell-Off</a>
The bond market, which plays a critical role in setting mortgage rates, reacted sharply to the inflation data. The yields on 10-year and 30-year Treasuries climbed to 4.30% and 4.47%, respectively, on Tuesday, echoing levels last seen in early December 2023, reflecting growing investor apprehension towards a resumption of inflationary pressures. 
Chart: 30-Year Treasury Yields Nears 4.5%, The Highest Since Late November
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093102/image-27-1024x495.png" alt="" class="wp-image-215754" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093102/image-27-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093102/image-27-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093102/image-27-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093102/image-27-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093102/image-27.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Traders Trim Rate Cut Bets, Mortgage-Related Stocks Sink</h2>
Market speculators have adjusted their expectations regarding Federal Reserve rate cuts, now anticipating less than a full percentage point of cumulative reductions by December 2024—a significant revision from the 175 basis points anticipated just a month earlier.
Following the inflation report and the bond market&#8217;s response, the real estate sector emerged as one of the most adversely affected, with the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) experiencing a 1.8% decline on Tuesday, reaching monthly lows. 
Similarly, the mortgage industry, as tracked by the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>), plummeted by 3.9%, marking its lowest point since mid-November 2023.
Among the most impacted stocks were Claros Mortgage Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMTG#NYSE">CMTG</a>), which saw an over 8% drop, Ares Commercial Real Estate Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>), down by 7.8%, and New York Mortgage Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NYMT#NYSE">NYMT</a>), which fell by 6.3%.
Chart: Mortgage Real Estate Stocks Have Retraced More Than Half Of The Oct-Dec Rally
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093519/image-29-1024x495.png" alt="" class="wp-image-215767" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093519/image-29-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093519/image-29-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093519/image-29-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093519/image-29-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/14093519/image-29.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37099227/economists-sound-alarm-on-inflations-stubborn-grip-no-chance-inflation-will-return-">Economists Sound Alarm On Inflation&#8217;s Stubborn Grip: &#8216;No Chance Inflation Will Return To 2%&#8217; Without New Rate Hikes</a>
Image created with photos from Shutterstock.

ACRE

CMTG

NYMT

PEAK

Sticky Inflation, Surging Treasury Yields Push Mortgage Rates To 2-Month Peak: Real Estate Stocks Tumble

After months of relentless interest rate hikes and dwindling volumes, the U.S. mortgage market is finally glimpsing light at the end <a href="https://www.benzinga.com/real-estate">of a long tunnel. </a>
Recent data from the Mortgage Bankers Association (MBA) indicates a significant drop in mortgage rates, hinting at improved affordability and a potential revival in the housing market.
<h2 class="wp-block-heading">Key Developments In The US Mortgage Market</h2>
<ol>
<li>Drop In 30-Year Fixed Mortgage Rates:
<ul>
<li>The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) declined to 6.83% in the week ending Dec. 15, 2023.</li>
<li>This rate marks a sixth-straight week of declines and a new low since June 2023. </li>
</ul>
</li>
<li>Economic Factors Influencing The Decline:
<ul>
<li>Mike Fratantoni, MBA's SVP chief economist, attributes this decrease to positive news about inflation reduction and the Federal Open Market Committee&#8217;s (FOMC) pivot towards rate cuts.</li>
<li>In its last meeting of the year, the Fed signaled that the median preferred interest-rate path suggests cuts totaling 75 basis points in 2024 and an additional reduction of 100 basis points in 2025. </li>
<li>U.S. Treasury bond yields have significantly fallen, with the 10-year Treasury yield dropping from 5% in October to 3.90% as of Dec. 20, pushing long-term mortgage rates lower.</li>
</ul>
</li>
<li>Mortgage Application Trends: While a 1.5% slowdown in the pace of new mortgage applications occurred last week, a year-over-year comparison shows a more favorable trend. The number of mortgage applications for purchasing a home, or refinancing one, are up by 18% compared to the same period last year.</li>
</ol>
Read also: <a href="https://www.benzinga.com/markets/equities/23/12/36246830/santa-rally-boosts-real-estate-stocks-5-etf-picks-to-ride-the-fed-rate-cut-wave">Santa Rally Boosts Real Estate Stocks: 5 ETF Picks To Ride The Fed Rate Cut Wave</a>
Mortgage data released last week by Freddie Mac also unveiled a decline in the 30-year average rate below 7%. According to Sam Khater, Freddie Mac's chief economist, &#8220;given inflation continues to decelerate and the Federal Reserve Board's current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year."
<h2 class="wp-block-heading">Sector Performance</h2>
Lately, stocks in the real estate sector have experienced an impressive surge, with the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) climbing 24% since late October. Particularly noteworthy within this sector is the performance of companies heavily influenced by residential mortgage rates. This segment, represented by the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>), has experienced a 30% increase in the same timeframe.
Standout performers in this sector include Arbor Realty Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABR#NYSE">ABR</a>) and Claros Mortgage Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMTG#NYSE">CMTG</a>), which have seen their stock prices soar by 29% and 39%, respectively.
Chart: REM vs XLRE 2-Month Performance
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/20095225/XLRE_2023-12-20_14-52-10_66c6f-1024x495.png" alt="" class="wp-image-165709" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/20095225/XLRE_2023-12-20_14-52-10_66c6f-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/20095225/XLRE_2023-12-20_14-52-10_66c6f-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/20095225/XLRE_2023-12-20_14-52-10_66c6f-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/20095225/XLRE_2023-12-20_14-52-10_66c6f-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/20095225/XLRE_2023-12-20_14-52-10_66c6f.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Now read: <a href="https://www.benzinga.com/money/best-reits">Best REITs to Buy</a>
Photo: Shutterstock

US Mortgage Rates Drop To 6-Month Low: A Turning Point For The Housing Market?

The early arrival of a Santa Claus rally has graced the real estate sector, with the bearer of good tidings being none other than Federal Reserve Chair Jerome Powell, who has signaled the <a href="https://www.benzinga.com/economics/macro-economic-events/23/12/36225016/powell-signals-peak-interest-rates-foresees-cuts-in-2024-markets-rally-traders-ex">possibility of interest rate cuts in 2024</a>.
This anticipation, coupled with the sector&#8217;s high sensitivity to the move in Treasury yields — with the 10-year note falling below the 4% threshold — has triggered a spectacular bullish wave across real estate stocks in recent sessions.
Since the release of the Federal Open Market Committee (FOMC) rate statement and Powell&#8217;s subsequent press conference Wednesday, no sector within the S&amp;P 500 index has seen growth anywhere near <a href="https://www.benzinga.com/real-estate">that of real estate</a>. 
<h2 class="wp-block-heading">Market Snapshot: S&amp;P 500 Sector Performance Since Fed Meeting</h2>
A glimpse at the S&amp;P 500 sector performance since 2 p.m. Wednesday to 3 p.m. Thursday reveals the following:
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Performance (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>+6.21%</td>
</tr>
<tr>
<td>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>+4.07%</td>
</tr>
<tr>
<td>Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>+3.58%</td>
</tr>
<tr>
<td>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>+3.29%</td>
</tr>
<tr>
<td>Industrials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>+2.67%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>+2.46%</td>
</tr>
<tr>
<td>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>+1.23%</td>
</tr>
<tr>
<td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>+1.2%</td>
</tr>
<tr>
<td>Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>+0.48%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>+0.47%</td>
</tr>
<tr>
<td>Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>-0.06%</td>
</tr>
</tbody>
</table>
</figure>
Read also: <a href="https://www.benzinga.com/economics/macro-economic-events/23/12/36243865/why-fed-rate-cuts-could-propel-real-estate-small-cap-gold-miners-solar-stocks-to-">Real Estate, Small-Cap, Gold Miner, Solar Stocks Go Wild On Prospect Of Fed Rate Cuts</a>
<h2 class="wp-block-heading">Chart: Real Estate Outperforms All Other Sectors Since Fed&#8217;s Dovish Pivot </h2>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/14162148/XLRE_2023-12-14_20-19-30_fbfce-1024x495.png" alt="" class="wp-image-161925" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/14162148/XLRE_2023-12-14_20-19-30_fbfce-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/14162148/XLRE_2023-12-14_20-19-30_fbfce-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/14162148/XLRE_2023-12-14_20-19-30_fbfce-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/14162148/XLRE_2023-12-14_20-19-30_fbfce-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/14162148/XLRE_2023-12-14_20-19-30_fbfce.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Top Real Estate Stock Movers</h2>
Leading the performance within this week&#8217;s XLRE ETF are the following stocks:
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Name</th>
<th>Industry</th>
<th>Price Chg. % (5D)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Prologis, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLD#NYSE">PLD</a>)</td>
<td>Industrial REITs</td>
<td>14.91%</td>
</tr>
<tr>
<td>Boston Properties, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BXP#NYSE">BXP</a>)</td>
<td>Office REITs</td>
<td>13.05%</td>
</tr>
<tr>
<td>Extra Space Storage Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXR#NYSE">EXR</a>)</td>
<td>Specialized REITs</td>
<td>12.52%</td>
</tr>
<tr>
<td>Kimco Realty Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIM#NYSE">KIM</a>)</td>
<td>Retail REITs</td>
<td>11.57%</td>
</tr>
<tr>
<td>Simon Property Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPG#NYSE">SPG</a>)</td>
<td>Retail REITs</td>
<td>10.96%</td>
</tr>
<tr>
<td>Host Hotels &amp; Resorts, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HST#NYSE">HST</a>)</td>
<td>Hotel and Resort REITs</td>
<td>10.29%</td>
</tr>
<tr>
<td>Essex Property Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>)</td>
<td>Residential REITs</td>
<td>10.28%</td>
</tr>
<tr>
<td>Alexandria Real Estate Equities, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARE#NYSE">ARE</a>)</td>
<td>Office REITs</td>
<td>10.07%</td>
</tr>
<tr>
<td>CBRE Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CBRE#NYSE">CBRE</a>)</td>
<td>Real Estate Management and Development</td>
<td>9.75%</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">5 ETFs To Get Exposure To Rate-Sensitive Real Estate Stocks</h2>
The XLRE ETF provides extensive coverage of the real estate sector, encompassing a variety of industries including industrial, office, hotel and resort, residential and specialized REITs. 
A similar broad exposure is offered by the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and the iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>), both of which have displayed performance nearly identical to XLRE in the last two sessions.
Within the realm of real estate-linked ETFs, two in particular have shown even more remarkable performance.
For investors seeking exposure to U.S. REITs that hold residential and commercial mortgages, the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>) is the go-to. This ETF in particular has also benefited from a Thursday announcement by Freddie Mac, which reported a dip in the average rates for 30-year mortgages below 7% for the first time since August.
The REM ETF has rallied 7.3% since the Fed meeting, outperforming the aforementioned funds.
Finally, there is a leveraged ETF, the Direxion Daily Real Estate Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRN#NYSE">DRN</a>), which has skyrocketed 18% in the last two sessions, offering a more aggressive bet on the real estate sector&#8217;s bullish run.
Read now: <a href="https://www.benzinga.com/money/best-reits">Best REITs to Buy</a>
Photo: Shutterstock, Unsplash and <a href="https://www.flickr.com/photos/imfphoto/" target="_blank" rel="noreferrer noopener">International Monetary Fund</a> on Flickr.

CBRE

Direxion Daily Real Estate Bull 3x Shares

iShares Trust Dow Jones US Real Estate Fund Index

Santa Rally Boosts Real Estate Stocks: 5 ETF Picks To Ride The Fed Rate Cut Wave

The latest data from the Mortgage Bankers Association (MBA) revealed a significant uptick in U.S. mortgage applications, marking a 3% increase from the previous week and the sharpest weekly <a href="https://www.benzinga.com/mortgage-rates">rise in two months.</a>
The surge came during a decrease in the average contract interest rate for 30-year fixed-rate mortgages, now at 7.41%, the lowest in two months.
Joel Kan, MBA's vice president and deputy chief economist, stated a reduction in U.S. bond yields triggered a decline in mortgage rates as incoming data signaled a softer economy and more signs of cooling inflation. 
"Mortgage applications increased to their highest level in six weeks, but remain at very low levels,&#8221; he added.
Yields on a 30-year Treasury bond fell to 4.53% at the time of this writing, marking the lowest level in two months. The popular iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) has rallied over 10% over the past month, 
<h2 class="wp-block-heading">Chart: 30-Year Mortgage Rates Drop To 7.41%, Providing Relief To Applications</h2>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="760" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/11/22105415/USMR_2023-11-22_14-53-22_d6fc2-1024x760.png" alt="" class="wp-image-148146" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/11/22105415/USMR_2023-11-22_14-53-22_d6fc2-1024x760.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/11/22105415/USMR_2023-11-22_14-53-22_d6fc2-300x223.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/11/22105415/USMR_2023-11-22_14-53-22_d6fc2-768x570.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/11/22105415/USMR_2023-11-22_14-53-22_d6fc2.png 1455w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
This rise in mortgage applications signaled a potential shift in the housing market, possibly driven by cooling inflation and a more approachable interest rate environment.
In its latest housing market outlook, Morgan Stanley anticipated improving affordability for U.S. houses heading into 2024. 
Morgan Stanley's experts believed a decrease in mortgage rates could spur a rise in the availability of homes for sale, leading to a modest drop in home prices, around 3%, by the end of 2024. 
However, the sustainability of this trend remained to be seen, especially considering the still subdued levels of refinance applications.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/11/35898749/us-housing-market-braces-for-affordability-as-mortgage-rates-ease-what-analysts-exp">US Housing Market Braces For Affordability As Mortgage Rates Ease: What Analysts Expect For 2024</a>
Market Reactions: Real estate stocks, as tracked by the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>), rose 0.7% minutes after the opening bell on Wednesday. Prologis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLD#NYSE">PLD</a>), American Tower Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMT#NYSE">AMT</a>), CoStar Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSGP#NASDAQ">CSGP</a>) figured among the sector&#8217;s best performers for the day, each posting a 1% increase. 
The iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>) also showed a similar performance. Today&#8217;s top performers in this niche included NexPoint Real Estate Finance, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NREF#NYSE">NREF</a>), up 2.2%, BrightSpire Capital, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRSP#NYSE">BRSP</a>), up 1.4% and Orchid Island Capital, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORC#NYSE">ORC</a>) up 1.2%. 
Read Now: <a href="https://www.benzinga.com/money/mortgages/find">Purchase and Refinance Mortgage Finder</a>

Analyst Ratings

BRSP

CSGP

NREF

US Mortgage Applications Surge As Rates Dip: Is The Industry Moving Out Of The Woods? Plus: Stocks, ETFs To Watch

The economy has been fairly resilient through the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/03/31410189/as-fed-decision-looms-larry-summers-makes-the-case-for-25-basis-point-hike-and-appl">current rate-tightening cycle of the Federal Reserve,</a> although the housing sector hasn&rsquo;t been among the ones showing strength.
What Happened: A weekly data released early Wednesday confirmed the sector may be turning the corner.
Mortgage application volume rose 3% week-over-week in the week ended March 17, data released by the Mortgage Bankers&rsquo; Association showed. This followed a 5% increase in the previous week and a steeper 7.4% climb in the week ended March 3.
See Also: <a href="https://www.benzinga.com/money/best-home-builder-stocks">Best Home Builder Stocks</a>
The purchase index rose 2% week-over-week but was 36% lower than a year ago.
The increase in mortgage application volume was attributed to the drop in Treasury yields amid the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/03/31450913/wharton-professor-jeremy-siegel-says-banking-crisis-a-silver-lining-why-he-expects-">banking crisis. </a>Mortgage rates fell for a second week, with the 30-gear fixed rate mortgage rate dropping to a one-month low of 6.48%.
Despite the pullback, the spread between the 30-year fixed rate and the 10-year Treasury remained wide at 300 basis points compared to the typical spread of 180 basis points due to increasing mortgage-backed security volatility, said Joel Kan, MBA&rsquo;s Deputy Chief Economist.
&ldquo;Both purchase and refinance applications increased for the third week in a row as borrowers took the opportunity to act, even though overall application volume remains at relatively low levels.&rdquo;
More insight into the housing market could be gleaned when homebuilder KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>) reports Wednesday after the close.
Price Action: In premarket trading, the iShares Mortgage Real Estate Capped ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/rem#BATS">REM</a>) rose 1.33%, to $21.35, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
&nbsp;

Mortgage Applications Volume Rise For 3rd Week As Rates Fall To 1-Month Low Amid Banking Crisis

Over a 10-year period, equity real estate investment trusts (REITs) tend to have a higher annualized return than mortgage REITs, which have an average return of 8.2%. Meanwhile, mortgage real estate investment trusts tend to have a higher five-year average dividend yield of 10.8%, which is much <a href="https://www.benzinga.com/trading-ideas/long-ideas/22/10/29386435/looking-for-double-digit-returns-3-mortgage-reits-you-can-buy-for-less-than-theyre-worth">higher than equity REITs</a>.
<img alt="" src="https://www.benzinga.com/files/u1108081/screen_shot_2022-10-31_at_2.38.42_pm.png" style="height:378px; width:539px" />
The main difference between an equity REIT and a mortgage REIT is that equity REITs own the real estate and earn income through rents, while mortgage REITs lend money to real estate owners and collect the interest on those loans.
The Invesco KBW Premium Yield Equity REIT ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwy#NASDAQ">KBWY</a>) which is constructed using a dividend yield-weighted methodology that seeks to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States, is down nearly 20% year-to-date. While its mortgage REIT ETF counterpart, iShares Trust iShares Mortgage Real Estate ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/rem#BATS">REM</a>) is down over 31% year-to-date, and has 50 holdings diversified evenly across small, mid, and large-cap equities, also allocating a little less than half of its assets to the financial services sector.
See Also:&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/22/10/29467044/these-2-mortgage-reits-have-yields-above-10-and-have-gone-unnoticed-trading-at-a-steep-d">These 2 Mortgage REITs Have Yields Above 10% And Have Gone Unnoticed Trading At A Steep Discount</a>
See how this mortgage REIT stacks up against an equity REIT.
Dynex Capital Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dx#NYSE">DX</a>) is offering a dividend yield of 12.99% or $1.56 per share annually, conducting monthly payments, with an infrequent track record of increasing its dividend payments. Dynex Capital is a mortgage real estate investment trust and primarily invests in residential and commercial mortgage-backed securities.
In the third quarter, Dynex Capital saw its book value decrease by $2.56 per share to $14.23 per share as of Sept. 30, 2022. Although realized gains on interest rate hedges included in GAAP results were $149.6 million for the third quarter and $486&nbsp;million year-to-date.
&ldquo;While we experienced a decline in book value during the quarter related to this volatility and spread widening, our liquidity remains solid. We are prepared and well-positioned to benefit when the markets find equilibrium,&rdquo; stated Byron L. Boston, CEO of Dynex Capital.
Apple Hospitality REIT Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aple#NYSE">APLE</a>) is offering a dividend yield of 5.62% or 96 cents per share annually, through monthly payments, with a track record of increasing its dividends once in the past year. Apple Hospitality is a real estate investment trust that invests in income-producing real estate, primarily in the lodging sector&nbsp;in the United States. Apple Hospitality owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels with a portfolio consisting of 220 hotels with approximately 29,000 guest rooms located in 87 markets throughout 37 states.
Justin Knight, CEO of Apple Hospitality in the second quarter press release mentioned, &ldquo;We remain confident in the resiliency of travel, the merits of our underlying strategy and our ability to continue to drive strong total returns for our shareholders over time.&rdquo; The firm increased its monthly cash dividend to $0.08 per share for November 2022.
Apple Hospitality&rsquo;s hotels include 96 hotels under the banner name Marriott International Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mar#NASDAQ">MAR</a>), 119 branded hotels under Hilton Worldwide Holdings Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hlt#NYSE">HLT</a>), four Hyatt branded hotels <a href="https://www.benzinga.com/news/earnings/22/10/29416648/hilton-worldwide-issues-q4-outlook-lifts-fy22-earnings-guidance-above-expectations">and one independent hotel</a>.
Now Check Out: <a href="https://www.benzinga.com/money/real-estate-investment">Benzinga&#39;s Complete Guiden To Real Estate Investing&nbsp;</a>

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These 2 REITs Have Soaring Yields: Mortgage REITs Versus Equity REITs

The iShares Trust iShares Mortgage Real Estate ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/rem#BATS">REM</a>) has 50 holdings diversified evenly across small, mid, and large-cap equities, also allocating&nbsp;less than half of its assets to the financial services sector. The iShares Mortgage ETF is down nearly 31% year-to-date, as rising mortgage rates cratered the market price <a href="https://www.benzinga.com/trading-ideas/long-ideas/22/10/29364669/2-mortgage-reits-with-soaring-yields-and-short-term-loans-that-perform-better-with-risin">of real estate firms</a>.
Mortgage real estate investment trusts (REITs) tout the highest average five-year dividend yield of 10.8%, out of any REIT sector. Which is why you may want to invest in a <a href="https://www.benzinga.com/money/mortgage-lenders-no-tax-returns/">mortgage</a> REIT (mREIT) with a yield higher than the average.
Since both of these <a href="https://www.benzinga.com/money/mortgage-lenders-no-tax-returns/">mortgage</a> REITs are trading at a discount to their book value, it may be an interesting swing trade to buy a beat-down real estate investment trust.
Also Read:&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/22/10/29386435/looking-for-double-digit-returns-3-mortgage-reits-you-can-buy-for-less-than-theyre-worth">Looking For Double-Digit Returns? 3 Mortgage REITs You Can Buy For Less Than They&#39;re Worth &mdash; By This Measure</a>
PennyMac Mortgage Investment Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pmt#NYSE">PMT</a>) is offering a dividend yield of 13.50% or $1.88 per share annually, using quarterly payments, with an infrequent track record of increasing its dividend payments. PennyMac Mortgage is a specialty finance company that invests primarily in residential mortgage loans and mortgage-related assets.
PennyMac&rsquo;s Chairman and CEO David Spector commented in the third quarter press release that, &ldquo;Meaningful income contributions from both of our production and servicing segments led to an annualized return on equity of 16% and growth in book value per share, despite mortgage rates climbing to their highest levels in more than a decade.&rdquo; PennyMac&rsquo;s book value per share increased to $68.26 per share from $65.38 per share on June 30, 2022.
Chimera Investment Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cim#NYSE">CIM</a>) is offering a dividend yield of 13.59% or 92 cents per share annually, through quarterly payments, with an inconsistent track record of increasing its dividends. Chimera Investment is a real estate investment trust engaged in investing in a portfolio of mortgage assets on a leveraged basis.
Since its inception, Chimera has distributed over $5.8 billion to its shareholders and has total assets of over $14 billion as of June 30, 2022. Chimera has a GAAP book value of $8.82 per share as <a href="https://www.benzinga.com/markets/penny-stocks/22/10/29270593/from-a-to-z-all-the-reits-hitting-new-52-week-lows-this-week">of June 30, 2022</a>.

These 2 Mortgage REITs Have Yields Above 10% And Have Gone Unnoticed Trading At A Steep Discount

With the Federal Reserve having lowered interest rates three times this year, it&#39;s easy to understand investors&#39; affinity for longer duration Treasuries and the related exchange traded funds.
ETFs with exposure to long-dated U.S. government debt are rewarding investors this year. For example, the iShares 20+ Year Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tlt#NASDAQ">TLT</a>), which has an effective duration of 18.10 years, is higher by almost 17% this year. In turn, investors have lavished $7.85 billion in new asset upon TLT, a total surpassed by just eight other ETFs this year.
Indeed, these are <a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/12/14934802/bond-flow-aid-the-ascents-of-etf-goliaths">go-go days for bond ETFs</a>, but investors may want to consider a Treasuries alternative in the form of mortgage real estate investment trusts or mREITs.
<h3>Why It&#39;s Important</h3>
That asset class is accessible via ETFs, including the iShares Mortgage Real Estate ETF (CBOE: REM). The $1.38 billion REM is outpacing TLT this year about 100 basis points while offering up a significantly higher yield at 8.10% on a 30-day SEC basis, <a href="https://www.ishares.com/us/products/239543/?referrer=tickerSearch">according to issuer data</a>.
Some professional investors believe REM can extend its outperformance of long-dated government bonds in 2020.
&ldquo;We believe the upside opportunity in this product remains significant should the yield curve steepen for a sustained period,&rdquo; <a href="https://www.rareviewcapital.com/">Rareview Macro founder Neil Azous</a> said in a note out Monday.
Azous recommended a long position in REM in February. The fund has posted a double-digit gain since that call.
<h3>What&#39;s Next</h3>
&ldquo;While waiting, long REM is a positive carry alternative to 2-10&rsquo;s or 5-30&rsquo;s Steepeners, which have a negative carry. For example, the 12-month yield is 8.42%,&rdquo; Azous said.
REM allocates over 29% of its combined weight to Annaly Capital Management (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nly#NASDAQ">NLY</a>) and AGNC Investment REIT (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/agnc#NASDAQ">AGNC</a>).
Azous is bullish on REM heading into 2020.
&ldquo;In addition, the ETF&rsquo;s holdings of credit-oriented mortgage REITs have benefited it this year as high yield credit has returned a ~12% gain alongside broad equity appreciation,&rdquo; the Rareview Macro founder said. &ldquo;We will likely carry this position into the New Year.&rdquo;
Related Links:
<a href="https://www.benzinga.com/general/biotech/19/12/14951009/theres-a-really-good-chance-you-missed-one-of-the-years-best-etfs">Don&#39;t Miss Out On This ETF Again</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/12/14951007/a-virtuous-avenue-to-smaller-stocks">Get ESG In A Small-Cap Wrapper</a>

Why Investors Should Consider Mortgage REITs Instead Of Long-Dated Treasuries

Mortgage real estate investment trusts, also known as mREITs, are an income-generating asset class that has been made more accessible to a broader swath of investors thanks to exchange traded funds.
The largest mREIT ETFs and the underlying securities themselves are high-yield assets, making them sensitive to changes in interest rates, but amid a more sanguine rate outlook, mREIT ETFs could be worth considering again.
<h3>What Happened</h3>
The iShares Mortgage Real Estate ETF (CBOE: REM) and the VanEck Vectors Mortgage REIT Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mort#NYSE">MORT</a>) are the leaders among mREIT ETFs with $1.24 billion and $161.60 million, respectively, in assets under management. REM&nbsp;is up about 9 percent this year.
&ldquo;Simply, an mREIT is a leveraged investment on the shape of the yield curve &ndash; that is, they borrow short and invest long,&rdquo; said Rareview Macro founder Neil Azous <a href="https://www.rareviewcapital.com/mortgage-reits-how-you-can-leverage-the-path-to-lower-interest-rates/">in a recent note</a>. &ldquo;Because the positive spread is 1.25-1.50%, even with the inverted/flat yield curve currently, using ~7 times average leverage, the carry is upwards of 10%. When the yield curve steepens, the net spread that mREIT&rsquo;s earn increases.&rdquo;
<h3>Why It&#39;s Important</h3>
REM and MORT have an average 30-day SEC yield of 9.36 percent, so mREITs are used as hedges against rising rates, it&#39;s not surprising MORT and REM lost an average of 3.75 percent in 2018 when the Federal Reserve raised interest rates four times.
This year, however, it&#39;s possible the Fed doesn&#39;t raise rates at all, potentially increasing the allure of mREITs and the aforementioned ETFs.
&ldquo;Firstly, when mREIT&rsquo;s recognize that the Federal Reserve hiking cycle is over and the next move is an interest rate cut, they will likely lift portions of their interest rate hedges and run a positive duration gap &ndash; meaning they will be net long mortgage securities at ~7 times leverage,&rdquo; said Azous. &ldquo;This will allow them to potentially reap the full potential of lower interest rates.&rdquo;
<h3>What&#39;s Next</h3>
Should it become apparent that the Fed is considering cutting rates, MORT and REM likely benefit under that scenario, too.
&ldquo;Secondly, when the Federal Reserve begins lowering interest rates, an mREIT&rsquo;s cost of leverage will reset lower, which increases its net income spread,&rdquo; said Azous. &ldquo;Over time, this will likely lead to a rise in dividends and contribute to an increase in book values. Collectively, we believe that the potential for mREIT&rsquo;s to generate a high amount of total return over the next year is significant. For a product with a historical volatility of ~13, the risk-adjusted return potential is one of the best in the public markets.&rdquo;
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/03/13339563/a-recent-upgrade-for-this-growth-sector">An Upgrade For This Growth Sector </a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/03/13332209/a-new-force-among-esg-etfs">A Hot New ESG ETF </a>

The Marvelous Mortgage REIT ETFs

Wall Street was abuzz Wednesday as traders digested the top picks from some of the country&#39;s most prominent money managers.

	The <a href="http://www.sohnconference.org/new-york/">Ira Sohn New York</a> Conference had market players and media alike flocking to the city&#39;s David Geffen Hall in the Lincoln Center for an annual meeting of some of the most esteemed investment minds.

	At the heart of the event is The Sohn Conference Foundation, which &quot;is dedicated to supporting innovative initiatives to cure and treat pediatric cancer.&quot;

	New York City is just one stop on the map for the Foundation&#39;s efforts. Visit <a href="http://www.sohnconference.org/">www.sohnconference.org</a> to see all the events, including conferences in Hong Kong, India, Tel Aviv and London.

	As the event can be quite the whirlwind of market-moving investment and trading ideas, Benzinga has wrapped up some of the most interesting ideas and market reactions.
<ul>
<li>
		Larry Robins, Glenview Capital - Refrained from discussing what he called &quot;anything actionable,&quot; and instead highlighted some of his already-known favorite long picks: CBS Corporation (NYSE: <a class="ticker" href="/stock/cbs#NYSE">CBS</a>), Flextronics International Ltd. (NASDAQ: <a class="ticker" href="/stock/flex#NASDAQ">FLEX</a>), Laboratory Corp. of America Holdings (NYSE: <a class="ticker" href="/stock/lh#NYSE">LH</a>), Thermo Fisher Scientific Inc. (NYSE: <a class="ticker" href="/stock/tmo#NYSE">TMO</a>), AbbVie Inc (NYSE: <a class="ticker" href="/stock/abbv#NYSE">ABBV</a>), Brookdale Senior Living, Inc. (NYSE: <a class="ticker" href="/stock/bkd#NYSE">BKD</a>) and Anthem Inc (NYSE: <a class="ticker" href="/stock/antm#NYSE">ANTM</a>) amid its deal with CIGNA Corporation (NYSE: <a class="ticker" href="/stock/ci#NYSE">CI</a>).</li>
<li>
		Carson Block, Muddy Waters - A known and often times referred to as &quot;infamous&quot; short seller, Block discussed a downside idea in Bank Of The Ozarks Inc (NASDAQ: <a class="ticker" href="/stock/ozrk#NASDAQ">OZRK</a>). He highlighted the company&#39;s &quot;extreme concentration&quot; on real estate lending and suggested it would need to raise capital this year and next.</li>
<li>
		John Khoury, Long Pond Capital - Hyatt Hotels Corporation (NYSE: <a class="ticker" href="/stock/h#NYSE">H</a>) was the sole idea Khoury discussed, calling the company &quot;a high quality name in the hotel sector&quot; -- a sector which he described as &quot;out of favor as an asset class.&quot; Shares of Hyatt rallied about 3 percent amid Khoury&#39;s call.</li>
<li>
		Jeffrey Smith, Starboard - Smith talked long ideas in Depomed Inc (NASDAQ: <a class="ticker" href="/stock/depo#NASDAQ">DEPO</a>) and WestRock Co (NYSE: <a class="ticker" href="/stock/wrk#NYSE">WRK</a>). He suggested Westrock shares could hit $71 by the end of 2017; the stock closed Wednesday down 1.5 percent at $38.95.</li>
<li>
		Jeffrey Gundlach, Doubleline Capital - Gundlach stayed broader, but did offer a couple ETF picks: iShares FTSE NAREIT Mortgage ETF (NYSE: <a class="ticker" href="/stock/rem#NYSE">REM</a>) as a long and Utilities SPDR ETF (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) as a short.</li>
<li>
		David Einhorn, Greenlight Capital - Consistently one of the headliners of the Sohn event in years past, Einhorn outlined a concerning picture for Caterpillar Inc. (NYSE: <a class="ticker" href="/stock/cat#NYSE">CAT</a>) and a rosier one for General Motors Company (NYSE: <a class="ticker" href="/stock/gm#NYSE">GM</a>).</li>
<li>
		Jim Chanos, Kynikos - Chanos best comments came out not on the main Sohn stage, but at a behind-the-scenes interview with a team of CNBC anchors. Chanos disclosed he is still shorting shares of Alibaba Group Holding Ltd (NYSE: <a class="ticker" href="/stock/baba#NYSE">BABA</a>) and considered the bear case in shares of Cheniere Energy, Inc. (NYSE: <a class="ticker" href="/stock/lng#NYSE">LNG</a>).</li>
</ul>

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