“The Fed is cognizant that increasing rates could potentially derail the housing recovery, which is a key driver of economic growth,” Robert Wetenhall, an analyst at RBC Capital Markets LLC, said in a Bloomberg article. “There’s no question that higher interest rates negatively affect buyers at the lower end of the market.”
SPDR S&P Homebuilders ETF
For more information on the housing sector, visit our homebuilders category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own XHB.