share_log

How The FOMC Announcement Affected The Major REITS

Benzinga Real-time News ·  Sep 23, 2022 14:14

Investors sold off shares in major real estate investment trusts (REITs) sold off after Federal Reserve Chairman Jerome Powell announced Wednesday that benchmark interest rates would go up by 0.75% to 3% and 3.25%.

Many big REITs are dividend-paying securities and are the ones most affected by rate changes. Although this level of rise was widely expected, the reality of it is now having an effect.

The Fed intends to fight inflationary trends by making it more expensive to borrow money. Such tactics directly affect the real estate markets by making mortgages more expensive and lowering the price of underlying properties as...

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment