“Through October 5, the S&P Building Products sub-industry index recorded a 40.0% gain, which far exceeded the 15.8% rise seen in the S&P 1500 Index during that period,” S&P Capital wrote in a recent note. [Homebuilders ETFs Rally on Housing]
The Homebuilder Confidence Index (Wells Fargo/NAHB) rose to new highs of 35 this summer, indicating that the outlook was improving. The index reached 40 in September, though any reading below 50 still indicates builders think sales conditions are poor, reports Jeff Clabaugh for Washington Business Journal.
SPDR S&P Homebuilders
Tisha Guerrero contributed to this article.