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...
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