Exchange traded funds that invest in homebuilders such as Toll Brothers (NYSE: TOL) and related housing sectors rose Tuesday after the Commerce Department estimated new home sales climbed about 7% in April.

Homebuilder ETFs fell last week after the lower numbers reported for housing starts, lending to a weak overall picture for the sector.

SPDR S&P Homebuilders ETF (NYSEArca: XHB) and iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) are among the sector ETFs. [Lowe’s Sales, Outlook Hurt Retail and Building ETFs.]

“Existing-home sales disappointed but are still above the 2009 pace; the current pace of just over 5 million annual sales suggests home prices will decline another 6% from here, and bottom in 2012,” write fixed income strategists for JPMorgan in the latest Securitized Products Weekly report. “However, we are not shifting our view on home prices more negative unless existing home sales start to drift below 2009 levels,” they add.

Previous months have shown a pattern of volatility in the new home sales numbers, -13.5% month-over-month in February and +11.1% month over month,  in March, according to Seeking Alpha. [Homebuilder ETFs Slip On Weak Housing Starts.]

The housing market is still anemic and any change in the right direction, upwards, is not expected for the short term. Many investors are looking forward to Friday, as the National Association of Realtors pending home sales report is due out.

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.