Real Estate Stocks Sink as Sticky Inflation Threatens Higher-for-Longer Rates
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U.S. real estate stocks tanked Wednesday after stubbornly high inflation data amplified concerns interest rates will remain elevated for some time and further distress the financial plumbing of America's property sector.
Real estate stocks were many of the S&P 500's worst-performing stocks on Wednesday after data showed inflation remained stubbornly high in March.
The inflation data could encourage officials at the Federal Reserve to delay interest rate cuts that market participants have been eagerly anticipating.
High interest rates have weighed on the housing and commercial real estate markets by locking out prospective homebuyers and rendering unfeasible the refinancing of troubled CRE loans.The problems at New York Community Bancorp have reignited fears about commercial real estate across the globe.