Said another way, even though mortgage rates remain near historical lows, millennials are not buying homes. [Millenials Hurting This ETF]
However, the government is pushing Fannie Mae and Freddie Mac to bring back mortgages with 3% down payments. If successful, that effort could lift ITB.
“With a strong stock market, improving employment picture, increased consumer confidence, and low borrowing costs and increasing housing activity, the macroeconomic backdrop remains positive for the household durables industry, suggesting continued revenue growth over the next two years,” said S&P Capital IQ.
SPDR S&P Homebuilders ETF