The builder ETF on Wednesday was about 14% above its 50-day average “which is extremely overbought,” Bespoke Investment Group said. Thursday’s rally carried the fund over its 200-day moving average.
The iShares DJ U.S. Home Construction (NYSEArca: ITB) also tracks builders and related housing sectors.
In other housing data Thursday, pending home sales fell 4.6% last month, according to a realtors group. Meanwhile, the average rate on 30-year mortgages fell to 4.1% in the latest week, according to Freddie Mac.
SPDR S&P Homebuilders