The real estate sector (XLRE) has been facing challenges due to uncertainty over potential Federal Reserve interest rate cuts. Fundrise CEO Ben Miller and CenterSquare Senior Investment Strategist Uma Moriarity recently discussed the current state of the US housing market on Market Domination.
Moriarity highlighted shelter inflation as a key factor contributing to high inflation data, indicating that it is a “lagging indicator.” However, she mentioned that “real-time shelter costs” are lower than reported inflation figures, suggesting a positive trend in the fight against inflation. With rate cuts still a possibility, Moriarity sees the current high-rate environment as a promising opportunity for investors interested in real estate and homebuilder stocks.
Miller echoed Moriarity’s views, noting that real estate tends to move inversely with interest rates. He believes that there is room for rates to decrease further, which could significantly benefit the real estate sector. Miller also expressed optimism about the sector’s potential for growth, suggesting that it may have reached a low point, presenting an attractive opportunity for investors.
Overall, the discussion on Market Domination provided valuable insights into the real estate market and the potential impact of interest rate changes. For more expert analysis and market updates, viewers can watch the full episode of Market Domination.
