“We are enjoying the most sustained demand we’ve experienced in over five years,” said Douglas Yearley, chief executive of Toll Brothers. [Builder ETFs Rally on Toll Brothers Earnings]
Last week, the Commerce Department said new home sales rose 3.6% in July to a two-year high.
“The housing market is making a modest but steady recovery in part because homes are more affordable: Mortgage rates have fallen to near-record lows. Housing prices are about one-third lower than at the peak of the housing bubble in 2006. Those trends have helped lift sales of both new and previously occupied homes,” USA Today reports.
“Still, the housing market has a long way to go to reach a full recovery. The pace of home sales remains well below healthy levels. Many people are still having difficulty qualifying for home loans or can’t afford larger down payments required by banks,” the newspaper added.
iShares Dow Jones US Home Construction