After feeling the pressure of negative investor sentiment early Monday, some real estate investment trusts (REITs) traded poorly on the HW 30 throughout the day.
The HW 30 — HousingWire’s exclusive list of mortgage related stock — concluded the day up 0.23%, starting the week off strong for the entire index.
Yet, REITs trading on the index continued to feel a minor sting throughout the day.
But some REITs managed to rise above it.
Walter Investment (WAC) regained its territory after it witnessed a shaky roller coaster this morning and posted a gain of 0.46% at the end of the day.
Monday morning HousingWire reviewed a Seeking Alpha article by Adam Aloisi that predicted a long road ahead for REITs.
"The perception is that REITs will suffer in a rising interest rate environment," Aloisi write. "With the Fed's taper finally taking effect this month, the visibility for an ultimate end to ZIRP is starting to gain traction, which has lead to a higher 10-year Treasury, and continued poor perception of REITs."
However, the rough day in the market was not solely left to REITs.
Servicer Nationstar Mortgage Holdings (NSM) declined most of the day, ending down 3.88%.
The week is still young and the market still has a lot more news to digest. Two big housing figures were officially confirmed Monday: Rep. Mel Watt, D-N.C., was officially sworn in as the first Senate-confirmed director of the Federal Housing Finance Agency and Janet Yellen as the next Federal Reserve chair.