SPDR S&P Homebuilders (NYSEArca: XHB) and iShares Dow Jones U.S. Home Construction Index Fund (NYSEArca: ITB) have both outperformed since the October market bottom. Overall sentiment within the sector has been positive, and the latest improvements in the U.S. employment situation should support this mood. Any signs of improvement on the employment picture are seen as support for the housing sector. [Are Homebuilder ETFs Signaling Better Times for Housing Market?]
The monthly housing starts reports was one of the weaker data points, indicating that new home construction had fallen 4.1% in December, down from 685,000 home starts in November, reports Wall St. Sector Selector.
SPDR S&P Homebuilders
Tisha Guerrero contributed to this article.