RCN Capital Investor Sentiment Index Shows Modest Recovery Amid Geopolitical and Interest Rate Pressures
The Fall 2026 RCN Capital/CJ Patrick Company Investor Sentiment Index (ISI) rose slightly to 89, recovering from a previous all-time low of 84. Despite this modest improvement, sentiment remains weak, with the index score sitting 12 points lower than the previous year and remaining below the 90 threshold for the third consecutive quarter. Geopolitical instability in Iran and recent Federal Reserve interest rate hikes are primary drivers of investor caution. Approximately 60% of investors cite the conflict in Iran as a negative factor due to rising energy costs and inflation, while over 50% expressed concern regarding increased borrowing costs following Fed actions. These factors, combined with mortgage rates reaching 7.5%, continue to squeeze profitability and reduce affordability for both homebuyers and renters.
Topics: geopolitical impact housing market affordability inflation interest rates real estate investor sentiment