From low interest rates to falling prices, there are plenty of things driving the housing market. The questions is whether that’s enough to make a case for being in homebuilder exchange traded funds (ETFs).

Pending home sales rose a record 10% in October, bolstering hopes that the sector is firmly on the mend. By all appearances, the recovery should be more firm. After all, home prices are low and falling lower, interest rates are at rock-bottom, there’s job growth (however tepid) and even some income growth. [Homebuilder ETFs Wait On Recovery.]

So what’s holding the housing market back from a full recovery?

The two homebuilder ETFs – SPDR S&P Homebuilders (NYSEArca: XHB) and  iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) – are still above their long-term trend lines, but they’ve trailed the markets in the last few months. Housing could still be weak for the time being – even homebuilders’ optimism has been way down this year. As long as this recovery is tepid and job growth is nil, real estate may be in for a bumpy ride yet.

Tisha Guerrero contributed to this article.

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.