SPDR S&P Homebuilders ETF (NYSEArca: XHB) and iShares U.S. Home Construction ETF (NYSEArca: ITB) rose more than 2% Tuesday morning after upbeat data on the U.S. housing market.
The Commerce Department said new home sales rose 2.1% last month to the highest rate in about five years.
“Analysts say the housing recovery is looking more sustainable and should continue to boost economic growth this year, offsetting some drag from higher taxes and federal spending cuts,” the Associated Press reports.
In other data Tuesday, the S&P/Case-Shiller index of 20 U.S. cities rose 12.1% in April from the previous year.
“The recovery is definitely broad based,” said David Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices.