Homebuilder exchange traded funds weakened along with the broader markets Tuesday ahead of June housing starts data.
Market consensus projects 950,000 new housing starts for the month of June. The new housing starts data will be released Wednesday.
According to Bloomberg data, housing starts in May increased by 914,000 units to a monthly 6.8% rise and up 28.6% year-over-year.
Housing starts, or New Residential Construction Report, account for the number of new residential construction projects that began over a particular month. The housing starts data is considered a critical indicator for economic strength.
Homebuilders traded higher early Tuesday on reports that U.S. homeuibder confidence in July rose to its strongest level in seven and a half years, but the sector weakened latter in the day, along with the broader markets. [Homebuilder ETFs Fade After Industry Confidence Data]
“Today’s report is particularly encouraging in that it shows improvement in builder confidence across every region as well as solid gains in current sales conditions, traffic of prospective buyers and sales expectations for the next six months,” NAHB chairman Rick Judson said in a statement, Reuters reports.
SPDR S&P Homebuilders ETF
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Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.