30-Year Mortgage Rate Slips Below 6% as Nvidia Dip Pulls US Stocks Lower
Shares of Nvidia fell sharply, dragging the S&P 500 down about 0.7% and the Nasdaq Composite off roughly 0.9%. Meanwhile the average 30-year mortgage rate dipped below 6%, boosting real estate sector outlook and providing potential support for XLRE holdings.
1. Tech Selloff Led by Nvidia
Nvidia shares fell over 2% today, leading to a 0.7% drop in the S&P 500 and a 0.9% slide in the Nasdaq Composite as investors grew cautious on semiconductor valuations.
2. Mortgage Rates Drop Below 6%
The average 30-year mortgage rate edged under 6% for the first time this month, settling near 5.98% on easing Treasury yields and signs of cooling inflation pressures.
3. Implications for Real Estate ETF XLRE
Lower borrowing costs may underpin housing demand and bolster real estate sector valuations, potentially supporting XLRE, though broader market weakness could limit near-term gains.