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Why Soaring Homebuilding Stocks May Plunge Even As Fed Cuts Rates

Why Soaring Homebuilding Stocks May Plunge Even As Fed Cuts Rates

Among the negatives are falling builder confidence, rising costs, labor shortages, trade tensions with China that may disrupt supplies of materials, and disappointing recent sales figures, according to a detailed story in The Wall Street Journal as outlined below. The S&P Homebuilders Select Industry Index has surged by 28.5% for this year through July 10, outdistancing the 19.4% gain for S&P 500 Index (SPX), per S&P Dow Jones Indices. A leading ETF tracking the homebuilding index, the SPDR S&P Homebuilders ETF (XHB), is up by 29.7% based on adjusted closing price data from Yahoo Finance.