Real estate closes a week overall positiveaided by the repercussions of progressively decreasing interest rates.
The central bank effect
Central banks also this week have attracted the attention ofinvestors, since an expansionary policy favors the mortgage market and therefore also the real estate sector. stock markets they seem to have definitively left behind the fears of a recession of the American economy also by virtue of the latest positive data on retail sales in the United States of America and unemployment benefits. Statistics that have reinforced the expectations that the Federal Reserve will reduce interest rates, at the meeting in September.
The labor market report announced in the previous week had, instead, heightened fears of an economic recession in the United States of America while the inflation data consumer spending has then eased concerns about the US cycle.
These movements have further raised expectations for the central banks’ moves in September, with the Fed and the ECB now seen as certain to lower interest rates, with benefits also for the housing market, which has been held back for some time by the high cost of money. Meanwhile, surprisingly, New Zealand has cut rates by 0.25%.
Macroeconomic data
The indications pThe most interesting news on the macroeconomic front came from the United States. On Wednesday, it emerged that mortgage applications in the United States (week to August 9) recorded significant growth for the second consecutive week. In particular, the index relating to refinance applications increased by 34.5%, while the index relating to new applications recorded an increase of 2.8%. According to data released by the Mortgage Bankers Associations (MBA), rates on 30-year mortgages fell to 6.54% from the previous 6.55%.
Meanwhile, in the United States, the NAHB index on the real estate market has shown a decline in builders’ confidence as the market awaits interest rate cuts. In July, there was a small sign of deterioration in the index, which stood at 39 points in August from 41 points in July. This is the lowest reading since December 2023.
The performance of the sector on the stock exchange
The real estate sector ccloses an overall positive week, where the best performance was achieved by Italy, with the FTSE Italia All Share Real Estate index taking home a rise of 0.7%, albeit more limited than the FTSE MIB market index which rose by over 3 percentage points.
Who goes up and who goes down
Among the listed real estate companies Piazza Affari and components of the sector index, sa positive week was recorded for Gabetti (+2.04%), followed by IGD and Abitare In both up by more than two percentage points. The worst performances, however, were those of Risanamento (-9.01%). Brioschi (-3.5%) and Dotstay (-2.56%) also performed badly.
