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Look Out! 3 Homebuilder Stocks Getting Ready to Shock the Market.
InvestorPlace Amid 2023’s continued stock market drama, homebuilder stocks have remained surprisingly resilient even as analysts predict an imminent crash. But homebuilder financial and operational reporting is built on a foundation of lagging indicators. Those indicators may be catching up to reality. The homebuilding market is rife with examples of the bullwhip effect; changes in consumer demand trigger reactions visible months later. Complicated by long logistics tails and stretched supply chains, low interest rates during the pandemic led to an upswing in consumer and institutional demand and a surge in home values as supply shrank. Companies like DR Horton (NYSE: DHI ), KB Homes (NYSE: KBH ) and Lennar (NYSE: LEN ) reacted by aggressively purchasing as much land suitable for development as they could, constructing houses at a rapid pace as soon as they had access to the necessary raw materials. However, when central banks started hiking interest rates through 2022 and into 2023, average 30-year mortgage rates popped from the low 3% range to over 7%, rising alongside a newly sluggish economy and job losses. more…
Top-Ranked Homebuilders Suddenly See Cracks Appear. D.R. Horton, Lennar Sell Off.
Investor''s Business Daily Homebuilders continued to fall Tuesday, even as new home sales topped estimates. Housing giants D.R. Horton and Lennar sold off. more…
3 of the Hottest ETFs to Buy in May 2023
InvestorPlace I’m not a fan of cryptocurrencies. Despite supporting the blockchain, I’ve never gotten comfortable with digital currencies. As a result, it makes it difficult for me to find hot ETFs to buy that aren’t in some way related to digital assets, which have been hotter than a pistol in 2023. For example, the top-performing ETF in 2023 through March 1 was the Valkyrie Bitcoin Miners ETF (NASDAQ: WGMI ). It was up more than 69% at the time. Two months later, WGMI is up 129% for the year. Those are some numbers. The problem is the ETF has less than $7 million in net assets. That’s hardly a beacon of security. I’m more interested in top-performing ETFs with hundreds of millions of dollars or more in assets. A quick look at Finviz’s performance statistics for ETFs in 2023 shows that most of the big performers are ETFs like WGMI, leveraged funds, or in some way different from your plain vanilla S&P 500 index fund. Reading between the lines, here are the three best ETFs to buy for the long haul. IYW iShares U.S. more…
The Housing Market Keep Frustrating Would-be Buyers
InvestorPlace Fed President Bostic wants to hold rates steady all year … the related impact on mortgage rates … why homebuilding stocks are surging today … checking in on our ITB trade Frustrated would-be homebuyers just suffered another “eye-roll” moment… On Tuesday, Atlanta Federal Reserve President Raphael Bostic said he envisions one last rate-hike, followed by a long pause, with rates held at that elevated level. Translation – mortgage rates are poised to keep housing affordability beyond the reach of millions of Americans. Here’s what Bostic actually said: One more move should be enough for us to then take a step back and see how our policy is flowing through the economy, to understand the extent to which inflation is returning back to our target. If the data come in as I expect, we will be able to hold there for quite some time. Once we get to that point, I don’t have us really doing anything but monitoring the economy for the rest of this year and into 2024. To be clear, mortgage rates aren’t officially tied to the Fed Funds rate. more…
Housing stocks are surging after data shows new home construction jumped in March
Business Insider Nederlands Housing starts for single-family homes rose 2.7% in March 2023. Justin Sullivan/Getty Images The iShares U.S. Home Construction ETF climbed Tuesday with shares of the country''s largest home builders rising. The ETF rose after data showed housing starts for single-family homes rose 2.7% in March. The ETF has jumped this year and may be signaling better conditions for home builders. A $1.6 billion gauge of homebuilding stocks jumped on Tuesday after data showed a monthly increase in construction of new homes, a potential sign of stabilization in a housing market that''s struggled from the blow of rising interest rates. The iShares U.S. Home Construction ETF rose 2.2% to 72.63, the highest since early February when the index recorded a near one-year high at 73.90. The move followed the Census Bureau''s March report on housing starts, which included a 2.7% increase in construction in single-family homes to 861,000. That was higher than an upwardly revised 838,000 in February. While the figure for single-family homes was a bright spot in the report, Bespoke Investment Group noted that on a 12-month average basis, housing starts have fallen for 10 consecutive months, a streak often associated with recessions. more…