|Bid||24.81 x 4000|
|Ask||24.97 x 900|
|Day's Range||25.44 - 25.72|
|52 Week Range||22.31 - 36.44|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.27|
|Expense Ratio (net)||0.58%|
These sector ETFs and stocks should give solid performance in the coming days thanks to upbeat jobs data for the month of December.
The average U.S. 30-year mortgage rate has fallen to a two-month low as investors rush to safe haven amid market decline, putting homebuilder ETFs in focus.
A deadly combination of rising rates and low affordability continues to pound the housing industry, including homebuilders and homebuilder-focused exchange-traded funds (ETFs) alike, such as the Direxion ...
Berkshire Hathaway, Grubhub, SPDR S&P Homebuilders and Invesco Dynamic Building & Construction highlighted as Zacks Bull and Bear of the Day
The operating backdrop remains tough for homebuilders given rising mortgage rates, higher construction costs, shortage of skilled labor and a dearth of buildable lots.
Homebuilder stocks and sector-related ETFs may be stuck in a mire as slowing demand among home buyers and a steep drop in housing starts drag down sentiment. The home construction industry weakened Monday after the National Association of Home Builders revealed U.S. home builder sentiment saw its steepest one-month decline in over four-and-a-half years in November due to rising mortgage rates and a tight home inventory, Reuters reports. “Today’s housing data was pretty bad,” Jim Smigiel, chief investment office of Absolute Return Strategies, told MarketWatch.
The one-two punch combination of rising rates and low affordability continues to pound the housing industry as the National Association of Home Builders/Wells Fargo Housing Market Index, a key measure ...
Homebuilders stocks and the related exchange traded funds recently rallied, albeit modestly, off 2018 lows, but some market observers believe the group remains vulnerable to additional downside. The SPDR S&P Homebuilders ETF (XHB) , iShares U.S. Home Construction ETF (ITB) and Invesco Dynamic Building & Construction ETF (PKB) are still sporting significant year-to-date losses. “The XHB homebuilders ETF and ITB home construction ETF are both tracking for their worst years since 2008, the middle of a housing crisis that demolished the group,” reports CNBC.
Mortgage applications hit a near 4-year low lately as rising rate concerns are affecting the sector, putting homebuilder ETFs in focus.
Homebuilders stocks and sector-related ETFs led the charge on Tuesday as the homeownership rate in the U.S. gains momentum. Supporting the gains in the homebuilder sector, the Census Bureau revealed the homeownership rate was 64.4% in the third quarter, compared to 64.3% in the prior three months and 63.9% a year earlier, Bloomberg reports. The steady price gains in the housing sector over the past six years are starting to slow, potentially allowing more buyers to bid on houses without resorting to a pricey bidding war.
The housing market is one of the few sectors in the U.S. that isn't riding on the country???s growth as rising rates and housing prices are resulting in lower sales, putting housing ETFs in focus.
The yields on benchmark Treasury notes headed lower Wednesday as the Commerce Department reported weaker-than-expected new home sales, which dropped by 5.5% during September--its lowest level since 2016. "Anyone watching home builder stocks or watching the data all year should not be surprised but its's clear this important area of the US economy, highly sensitive to price and rates, has obviously slowed sharply," said Peter Boockvar, chief investment officer for the Bleakley Advisory Group. The new home sales data comes as housing starts also fell more than expected, sliding by 5.3% to a seasonally adjusted annual rate of 1.201 million units last month, according to the Commerce Department.
Positive earnings from the likes of Bank of New York Mellon, BB&T and Danaher were overshadowed by rising yields in the early trading session on Thursday as benchmark Treasury yields rose across the board, causing the Dow Jones Industrial Average to fall by over 150 points. In part, Treasury note yields were partly to blame for last week’s stock sell-off as benchmark notes went on a weeklong ascent in the week prior, pushing to new highs that caused investors to fret. "The bottom line is that the long end of the US yield curve has managed to break out for the first time in several years and that other developed market yields have also been moving higher," said Michael Shaoul, chairman and CEO of Marketfield Asset Management.
Housing starts fell more than expected, sliding by 5.3% to a seasonally adjusted annual rate of 1.201 million units last month, according to the latest data from the Commerce Department. The fall nailed homebuilder ETFs like the iShares US Home Construction ETF (ITB) , SPDR S&P Homebuilders ETF (XHB) and the Invesco Dynamic Building & Construction ETF (PKB) . The drop in housing starts was also paired with August's data being revised down to show starts rising to a rate of 1.268 million units versus the previously reported 1.282 million units.
In a bull market that has lasted as long as the current one, spotting laggards becomes increasingly easy. Homebuilding stocks and exchange-traded funds are among those laggards.
A rising rate landscape continues to rock the foundations of the real estate sector, particularly when it comes to homebuilders, which could benefit the Direxion Daily MSCI Real Est Bear 3X ETF (DRV) , but put persistent downward pressure on the Direxion Daily Homebuilders and Supplies Bull 3X Shares (NAIL) . With 30-year mortgage rates already surpassing the 5% mark, the cost to finance a home is getting more expensive, clamping down a housing market that has been lagging even as U.S. equities were in the midst of a historic bull run. Compounding the issue is the benchmark U.S. Treasury yield on the 10-year note reaching a new seven-year high.