With mortgage
rates expected to stay below 4 percent for the
remainder of the
year, home sales should reach 6.2 million units for 2017, a three percent increase
over the 2016 pace.
There are four major reasons, he reports, why REITs will outperform the Russell 2000 and S&P 500
over the next six months: Interest model is calling for a 1/2 point drop in
rates; large cap equities have too much speculation premium in them and are due for a correction; REITs make up 14 %
of the Russell 2000, and small cap issues are expected to outperform large cap for the
remainder of the
year; and the defensive nature
of REITs puts them at an advantage under certain market conditions.