Mortgage Rates and Market Trends - Mortgage rates have decreased for two consecutive weeks, with the average rate on a 30-year mortgage falling to 6.95% from 6.96% last week, down from 6.99% a month ago [1] - The average rate on 15-year fixed-rate mortgages also declined to 6.12% from 6.16% [1] - The bond market's reaction to the Fed's interest rate policy significantly influences mortgage rates, with the 10-year Treasury being a major factor [2] Future Expectations - Anticipation of multiple Fed rate cuts has influenced long-term bond yields, which in turn affects mortgage rates [3] - The Fed's December meeting indicated only a couple of cuts in 2025, leading to speculation on how mortgage rates will respond [3] Housing Market Dynamics - Existing home sales rose for the third consecutive month in December, while pending home sales decreased by 5.5% [4] - The inventory of homes for sale has increased nearly 25% compared to the previous year, which may lead to lower prices and attract first-time buyers [5] Investment Opportunities - Companies in the real estate sector are showing promising growth potential, with several stocks having a Zacks Rank 2 (Buy) and a VGM Score of A or B [6] - FirstService Corporation (FSV) has an expected earnings growth rate of 7.9% for the current year, with a consensus estimate improvement of 1.1% over the past 60 days [7] - Jones Lang LaSalle Incorporated (JLL) has a significantly higher expected earnings growth rate of 83.8% for the current year, with a 1.7% improvement in consensus estimates [8] - Brookfield Infrastructure Partners L.P. (BIP) has an expected earnings growth rate of 4.8% for the current year, with a 3% improvement in next-year earnings estimates [9]
3 Real Estate Stocks to Buy as Mortgage Rates Start to Cool Down