Builders would face “more competition, particularly in markets where existing home prices are still well below the average price of building a new home,” Blomquist said.
Housing market observers will be looking for housing starts data after a 16.5% drop in April and a 5.4% rise in March. Additionally, the existing home sales data will come out Thursday. The More importantly, the markets will be watching out for the Federal Open Market Committee (FOMC) announcement, which will reveal its plans for short-term interest rates in the U.S. and any decision on the current $85 billion a month bond-purchasing plan.
SPDR S&P Homebuilders
For more information on the housing sector, visit our homebuilders category.
Max Chen contributed to this article.
