Ben Bernanke’s sentiment and comments toward the homebuilder sector is continuing to echo through related stocks and exchange traded funds (ETFs). Shares of homebuilders were trading even lower Friday for the second session as it is evident that troubles for this sector are going to continue for awhile.
iShares Dow Jones US Home Construction (ITB) was ended the session down a little more than 4%. The inventory of unsold homes and foreclosure have piled up to record highs. Mark Cotton for Thomson Financial reports that Ben Bernanke spoke before the Senate Banking Committee, saying that a virtual shutdown of the market for subprime mortgages and a reluctance to lend "jumbo" loans of $417,000 or more have irritated the problems in this market.
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