** Interest rate-sensitive homebuilders and real estate shares leap on Fri after Federal Reserve Chair Jerome Powell telegraphs imminent rate cut in Jackson Hole speech
** "The time has come for policy to adjust," Powell says, adding, "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."
** Markets pricing in higher chances for rate cut in Sept; declining rates spur lower mortgage rates, aiding homebuilders, and lead to cheaper financing for real estate firms/REITs
** Benchmark U.S. Treasury 10-year yield US10YT=RR slides 5.7 basis points to 3.804%, on track for biggest daily fall in three weeks
** PHLX Housing Index .HGX rises 3.5%: top gainers include LGI Homes LGIH.O 6%, M/I Homes MHO.N 6%, Meritage Homes MTH.N 5%, Pultegroup PHM.N 4% and DR Horton DHI.N 3%
** Home improvement retailers Home Depot HD.N and Lowe's LOW.N climb 2% and 3%, respectively, on Fri
** S&P 500 real estate index .SPLRCR rises 2% to 2-yr high on the session
** Sector's top winners include BXP BXP.N (formerly Boston Properties), American Tower AMT.N, Alexandria Real Estate ARE.N, CBRE Group CBRE.N and Public Storage PSA.N up between 2%-4.4%
** With moves on Fri, HGX up ~21% YTD and SPLRCR up ~8% compared to 18% advance for S&P 500 .SPX
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))