The housing recovery continues to gather steam as the improving economy, low rates and rising employment numbers help boost demand. This week, homebuilder exchange traded fund investors will have to watch out for any hiccups from existing home sales, the FHFA house price index and new home sales data.
On Monday, the investors will be waiting on the existing home sales tally on previously constructed homes, condos and co-ops for June.
Traders monitor existing homes sales to take a pulse on both the demand for housing and the forward momentum in the economy. The home resale data helps provide an overview on America’s confidence in its financial position.
Additionally, home purchases also come with “ripple effects” that stimulate consumer staples and discretionary spending to stock up a new household.
The Federal Housing Finance Agency (FHFA) House Price Index is updated on Tuesday. Using data from Fannie Mae and Freddie Mac, the index confirms conventional mortgage purchases and home prices. [Slowing Foreclosure Rate Boosts Homebuilder ETFs]
Higher home prices encourages new construction projects, whereas falling prices would negatively affect homebuilders.