The major real estate investment trusts (REITs) started to rally after the Oct. 13, 2022, consumer price index report from the U. S. Bureau of Labor Statistics, despite the slightly hotter-than-expected September inflation number of 8.2% year-over-year figure versus the expected 8.1% year-over-year. The previous month had come in at 8.3%. Core inflation hit 6.6%, although estimates had been at 6.5%. August hit a rate of 6.3%, so this move up is concerning.
Although this means the Fed is highly likely to keep raising interest rates, that didn’t stop REITs or the rest of the stock market from staging an extraordinary rally. The iShares U. S. Real Estate ETF (NYSE:IYR), a benchmark for the sector, is up 3.8% since the announcement. Each of the 11 major REITs followed here ended the trading session on Oct. 12 in the green, a rare positive showing for the entire group.
