REITs end lower as US yields rise, Powell dents hopes for September rate cut

Shares of real estate investment trusts ended the regular session Wed with losses as Treasury yields rose in the wake of Federal Reserve Chair Jerome Powell comments that it is too soon to say whether the central bank will cut interest rates in September

Shares of AvalonBay Communities AVB.N ended the session down 3.6%, while Mid-America Apartment Communities MAA.N was down 2.3% and Vornado Realty Trust VNO.N was down 2.7%

AvalonBay, which reported results after the close, was down 0.6% in after-hours trading

Higher borrowing costs are a negative for the real estate firms

Mortgage demand weakened to its lowest level since May last week, according to the Mortgage Bankers Association

Homebuilder sentiment in July is near 2-1/2 year low, according to the National Association of Homebuilders

Single family housing starts hit an 11-month low in June, as building permits slumped