|Bid||0.00 x 1000|
|Ask||101.11 x 1000|
|Day's Range||88.12 - 92.78|
|52 Week Range||31.78 - 98.55|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||41.62%|
|Beta (5Y Monthly)||2.93|
|Expense Ratio (net)||0.99%|
Homebuilder confidence got a boost in light of last week’s data, which showed that construction starts in the U.S. grew to a 13-year high with 1.61 million starts in December, according to data from the Commerce Department. According to some analysts, the milder-than-expected winter could be a reason for December’s rise in housing starts.
The average rate on a typical 30-year fixed rate mortgage fell to its lowest level since October, which could feed into strength for homebuilder ETFs. According to Mortgage News Daily, the rate fell to 3.69%, which could have prospective home buyers rethinking a real estate purchase in 2020. This fall in rates couples increased buyer sentiment tracked by a monthly survey put out by secondary mortgage market participant Fannie Mae (HPSI).
Low interest rates to start 2020 could help give a shot in the arm to homebuilder ETFs in the new year. Lower mortgage rates could continue to give the housing market a much-needed boost, which could translate to more strength for homebuilders. Rising rates, low affordability and rising homebuilder costs due to tariffs have been thorns in the side for the housing market the past couple of years.
While this strategy is highly beneficial for short-term traders, it could lead to huge losses compared to traditional funds in the fluctuating or seesawing markets.
Lower interest rates are injecting more optimism for home builders as they look to the close of 2019 and into 2020. This comes despite the National Association of Home Builders’ monthly confidence index falling one point to 70 in the month of November after October’s number represented a 20-month high. Home builders expect future sales to grow in the next six months, but confidence in near-term prospects for homes currently on the market is lower.
Caterpillar disappointed investors in Wednesday’s trading session as the construction equipment manufacturer missed analysts’ expectations for its third-quarter earnings results and lowered its forecast for the rest of the year. This kept ETF investors who were looking for signs of construction strength translating to real estate strength at bay. The company also lowered its full-year earnings per share forecast to a range of $10.59 and $11.09 from $12.06 and $13.06 a share.
September has been kind to the U.S. stock market thanks to another Fed rate cut and positive trade developments that have led to renewed trade of riskier assets.
The SPDR S&P Homebuilders ETF (NYSEArca: XHB) is up nearly 34% year-to-date and with earnings season looming, homebuilder ETFs have a chance to extend their 2019 paces. XHB seeks to provide investment ...
A confluence of lower mortgage rates and rising affordability could give homebuilder exchange-traded funds (ETFs) the necessary fuel to propel further gains. In particular, the SPDR S&P Homebuilders ETF ...
National home prices are beginning to taper off, but low mortgage rates could give the housing sector a boost, which could shore up homebuilder exchange-traded funds (ETFs). Home prices were higher in ...
Recent commentary from home improvement retailers are another point in favor of the near-term thesis for NAIL. While those are consumer cyclical stocks with some tariff sensitivity, broadly speaking, the setups in that group favor NAIL. Plus, interest rates are a big assist for homebuilders when those rates are declining.
This article was originally published on ETFTrends.com. Homebuilder exchange-traded funds (ETFs) could be on the verge of a breakout. As such, ETFs to watch moving forward include the the iShares US Home Construction ETF (ITB) and SPDR S&P Homebuilders ETF (XHB) . From a technical perspective, things are also looking on the up and up.
Equipment manufacturer Caterpillar disappointed with its second-quarter earnings on Wednesday, citing the U.S.-China trade wars as the primary reason for higher costs affecting the company’s bottom line. ...
The Trump administration's policies of increased tariffs on steel, aluminum and Canadian lumber as well as tougher immigration rules (especially pertaining to Mexico) could hurt homebuilding ETFs.
Traders may want to keep an eye on the attitudes of millennials when it comes to owning versus renting, which could influence the Direxion Daily Homebuilders and Supplies Bull 3X Shares (NAIL) . This pushed rents up an average of 3% nationally to $1,390 per month, according to RealPage, a real estate software and analytics company. “Demand is proving especially strong in this year’s primary leasing season,” said RealPage’s chief economist, Greg Willett.
The Wall Street logged in the strongest performance in more than a decade for the first half of the year. We have highlighted nine leveraged equity ETFs that piled up more than 60% returns in the first half.
Prior to the subprime mortgage crisis, countless would-be investors and flippers purchased millions of distressed homes, turning some of them into lucrative rentals. What was once a novelty became and movement, filled with television shows and Instagram posts, as people scrambled to become house flippers, calling themselves investors. Foreclosures, however, are now few and far between. Distressed properties, which include foreclosures and short sales, compose just 2% of home sales today, off from a high of 49% in March 2009, according to the National Association of Realtors.
Thus far this year, NAIL is up a whopping 68 percent and is looking to build more gains in the future if the housing market happens to stay immune from the trade war news. "Amid the hand wringing over whether the U.S. and China are coming closer together or further apart on a trade deal, a dark horse has emerged in sector investing that seems immune to the cyclic boom and bust of this headline-driven market--that underdog is homebuilders," a Direxion Investments post noted. NAIL seeks daily investment results equal to 300% of the daily performance of the Dow Jones U.S. Select Home Construction Index.