U.S. Real Estate Stocks Outperform as Treasury Yields Fall in October

U.S. real estate shares outperformed the broader market in October as investors rotated away from technology and long-term Treasury yields declined, with the Federal Reserve holding interest rates steady.

Yields on 10-year Treasury securities fell 35 basis points, while 30-year yields dropped 32 basis points. The retreat in long-term borrowing costs added support for the sector as technology shares faced selling pressure.

An executive order directed the FHFA to develop a pilot program that would cancel mortgage insurance premiums after borrowers meet equity requirements based on current market values.

Company results produced mixed share moves. Jones Lang LaSalle rose after its third-quarter earnings exceeded expectations. Extra Space Storage also advanced after strong results and an increase to its funds from operations guidance. CoStar shares declined following its results and the announcement of a Vexcel acquisition, while Sun Communities fell after revenue missed estimates.

Before the October outperformance, major U.S. real estate gauges had posted a weekly gain of more than 1%.