iShares Dow Jones US Home Construction (NYSEArca: ITB) was up more than 1% Tuesday, however, after the data on housing starts.
An index on builder confidence released this week showed industry confidence levels fell for April.
“While builders in some areas are starting to see a pickup in traffic of prospective home buyers, many consumers remain skittish about the health of the housing market and overall economy, particularly in view of recent legislative and regulatory proposals that could make it much harder to get a mortgage,” said Bob Nielsen, chairman of the National Association of Home Builders. “At the same time, builders are competing against a large number of foreclosed and distressed properties on the market, which are holding down prices and appraisals and making it tough for potential clients to sell their existing homes.”
Tisha Guerrero contributed to his article.