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        Lower interest rates are expected to boost property stocks


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The Philadelphia Housing Index (PHLX Housing Index) lagged behind in 2018, but has risen by about 30% this year, about twice the S&P 500's rise over the same period.
Mortgage rates have fallen as yields on U.S. Treasuries have fallen, and after the Fed cut rates last month, it hinted that it might cut rates again this year, depending on the data, and interest rate prospects remain low.
This week, the yield on US 30-year bonds fell below 2%, a record low, while the benchmark 10-year bond yield fell to a three-year low as global trade tensions lingered and global economic growth continued to slow.
According to Freddie Mac, a mortgage lender, the 30-year fixed mortgage rate dropped to 3.60% from a November high of 4.94%. Mortgage rates are usually linked to the yield of the benchmark 10-year bond.
Strategists say this augurs well for home builders and the real estate market. The real estate market has been struggling because of the shortage of land and labor.
A report on Friday showed that housing construction in the United States fell for the third consecutive month in July as multi-family housing construction fell sharply, but building permits jumped to a seven-month high, bringing hope to the troubled housing market.


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