Mortgage rates are back on the rise due to a strong performance in retail sales and labor market data, along with positive monthly inflation readings. This has raised the prospect of the Federal Reserve continuing its interest rate hiking campaign through the summer.
The housing market has been top-of-mind for new and would-be homeowners for months, as the Federal Reserve’s aggressive rate hike campaign has kept mortgage rates at highs last seen since 2007.
And it’s not just expensive borrowing costs keeping people in their apartments.
Joining the list of real estate investment trusts (REITs) in uptrends, Essential Properties Realty Trust Inc. (NYSE: EPRT) recently hit a nine-month high. After establishing an October 2022 low of $19, the move up to the $25 area amounts to a 31% rally in about four months.
Every year, there are certain times when stock prices do not come close to reflecting the opinions of Wall Street analysts, and these times can be opportunities for investors to pick up shares that have the potential for strong appreciation.
Stocks can fly up or down very quickly for many reasons, including rumors, analyst upgrades or downgrades, dividend increases or solid earnings reports that beat the Street.
But when a stock that has been sinking — both short and long term — suddenly soars 8% in one day on heavier than usual volume, it bears a closer look.
Independence Realty Trust Inc. (NYSE: IRT) owns and operates multifamily apartment properties nationwide with an eye toward benefiting shareholders through cash flow and possible increased value of the underlying real estate.