Despite concerns about the housing recovery losing momentum, homebuilders exchange traded funds have steadied in recent weeks.
Earlier this quarter, builders’ confidence in the housing market has slightly improved, but remain at low levels for the third straight month, CBS News reports. [Traders See Upside for Homebuilders ETF]
“Builder confidence has been in a holding pattern the past three months,” Kevin Kelly, chairman of the homebuilders association, said in the CBS article. “Looking ahead, as the spring home buying season gets into full swing and demand increases, builders are expecting sales prospects to improve in the months ahead.”
Even with some headwinds, the iShares U.S. Home Construction ETF (NYSEArca: ITB) has gained 4.3% over the past month and the ETF’s technical outlook is improving.
“Bullish momentum is starting to build on the daily chart, after a few months of basing action. ITB bottomed out at the rising 200-day MA and cleared the downtrend line of the base several weeks ago. After stalling shy of $25, the price action has pulled back into support,” said Deron Wagner of Morpheus Trading Group.