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Why Homebuilding Stocks Once In Bear's Claws Can Rebound Longterm

Why Homebuilding Stocks Once In Bear's Claws Can Rebound Longterm

Homebuilding stocks, which fell deep into a bear market in 2018, have rebounded an impressive 17% the year, as measured by the SPDR S&P Homebuilders ETF (XHB). The once beaten-down sector has charged well ahead of the market, beating the S&P 500’s 12.5% gain year-to-date, on track for its best quarter in seven years. Investors and analysts say the rebound can be attributed to Fed-induced low mortgage rates and interest rates, per several articles including a CNBC column.