Last week's jumbo rate cut from the Federal Reserve isn't looking like a panacea for what ails the real-estate sector as long-end Treasury yields continue to creep higher, said Jose Torres, senior economist at Interactive Brokers, in a Wednesday note. "Investors are realizing that the Fed’s journey down the monetary policy stairs may not bolster the ailing real estate sector, with long-end yields remaining elevated despite the central bank’s jumbo rate reduction last week," he wrote. "Against the backdrop, the Treasury curve is steepening sharply as bond vigilantes smell an inflation problem down the road and remain unwilling to lock in the coupons of the day." Sales of newly built homes in the U.S. fell 4.7% to an annual rate of 716,000 in August, from a revised 751,000 in the prior month, the Commerce Department reported Wednesday. The pace of sales was still the highest since April and topped economist forecasts for a drop to 700,000. The data was " further evidence of costly duration, with new home sales declining and inventories increasing as builders relied on discounts to support transactions," Torres said.