Home builder ETF down in 23 of past 25 trading days
The combination of higher interest and higher construction costs are swamping any economic optimism in the home building segment.
A big surprise this year has been the softness of the housing market. There is demand but low rents, high construction costs and high interest rates have tipped the balance towards buying existing homes over new construction.
As a result, home builder shares have been beaten up. The pain has accelerated recently with the home builders' ETF low lower in 23 of the past 25 trading days in a 16% swoon that takes it to the lowest since Dec 2016.
