It seems the SPDR S&P Homebuilders (XHB) exchange traded fund (ETF) cannot catch a break. It’s still a staggering 47.4% off its high.
Every day it seems there’s a new story on the doom and gloom of the housing market. Foreclosures are at a historic record high. Pending sales of previously owned U.S. homes fell 12.2% in July from credit tightening, bringing them to their lowest point since September 2001, according to Joanne Morrison for Reuters. Economists warn that the situation could get worse in the coming months as an estimated 2 million adjustable-rate mortgages taken out with low introductory interest rates reset to much higher rates, reports Martin Crutsinger for the Associated Press. If that turns out to be true, XHB could continue its rough ride for a while.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.