Homebuilder ETFs were higher Wednesday after sector bellwether Toll Brothers (NYSE: TOL) reported a smaller loss and said orders rose 7% in the latest quarter, lifting hopes for the key spring selling season.
In other housing data, the Federal Housing Finance Agency on Wednesday said U.S. house prices fell 2.5% in the first quarter. It was the largest quarterly decline since the fourth quarter of 2008, according to the report.
SPDR S&P Homebuilders ETF (NYSEArca: XHB) and iShares Dow Jones US Home Construction (NYSEArca: ITB) were both up more than 1%.
“Recent results from Pulte (NYSE: PHM) and DR Horton (NYSE: DHI) provided the first look into the emerging theme of a better move-up buyer this spring and Toll Brothers [quarterly]results seem to have confirmed that trend,” Deutsche Bank said in a note Wednesday. Toll shares added 2%.
Housing ETFs rose on Tuesday after the government estimated new-home sales climbed 7% in April. [Homebuilder ETFs Higher on Sales Report]
SPDR S&P Homebuilders ETF
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