One reason for the recent stock market volatility came from a dip in the 30-year mortgage rate. On August 9, 2024, the 30-year average mortgage rate dropped to 6.5%. That's the lowest it's been since May 2023. And the 30-year fixed-rate mortgage is down even more at 6.3%.
The decline is due to technical factors. Specifically, long-term bond yields. Many institutional investors now expect the Federal Reserve to cut interest rates in September, and perhaps by as much as 50 basis points. That is causing a flight into long-term (10-year) Treasury bonds. Since bond prices and bond yields have an inverse relationship, the yield on the 10-year is down and... voila! You have a decline in mortgage rates.
Adding fuel to the rally, the National Association of Realtors (NAR) expects moderately lower mortgage rates in the second half of 2024 with more home sales and price stability.
This combination of lower mortgage rates and increased housing activity will likely be bullish for housing stocks. In this special presentation, we look at seven housing stocks that stand to benefit from this trend.
Click the "Continue to Slide #1" button to view the first company.
