“A barrage of monthly housing data has been released in the past week, with weaker-than-expected existing-home sales and housing-construction data raising concern but better-than-expected new-home sales and homebuilder sentiment providing continued optimism that the strong housing recovery will continue,” said Morningstar analyst James Krapfel in a note.
“We believe the extent of the recent rise in mortgage rates could give some pause to existing homes and slow the pace of torrid housing price gains, but we expect housing production to continue to lift strongly off their depths given the dearth of housing inventory on the market,” he added.
iShares US Home Construction ETF
Full disclosure: Tom Lydon’s clients own XHB.