Homebuilding and real estate exchange traded funds (ETFs) were up by as much as 2.5% or more in midday trading, despite a dismal report saying that new home sales were perched at their lowest level in more than 16 years.

Sales in March dropped by 8.5%, and it’s the slowest pace now since October 1991. The median price of a new home in March also fell 14.6%, the largest amount in almost 40 years, reports Martin Crutsinger for the Associated Press.

Other economic news was mixed:

• Factory orders for big ticket items fell for a third consecutive month in March, making for the longest streak of declines since 2001.
• Demand for durable goods fell by 0.3%, which was worse than expected.
• Consumer sentiment is at recessionary lows as the price of gasoline soars.
• On the upside, the Labor Department reported that jobless claims fell by 33,000 last week. Economists had been expecting a rise of 3,000.

So far in trading today, real estate and homebuilder ETFs seem to be shaking off the bad news:

• iShares Dow Jones US Real Estate (IYR), up 4.9% year-to-date
• SPDR S&P Homebuilders (XHB), up 13.4% year-to-date
• iShares Dow Jones US Home Construction (ITB), up 12% year-to-date

Tags: Homebuilders, Media, Real Estate