Still, homebuilders equities have other concerns. Mortgage rates have increased to their highest level of the year, and loan applications plunged 13.2% for the week ended Friday, reports Dian Olick for CNBC. Mortgage applications to purchase a home also fell 7% for the week.

Recently, Fannie Mae and Freddie Mac introduced 3% down payment loans while the U.S. Department of Housing and Urban Development also lowered insurance premiums that low-down-payment borrowers have to pay. [Lower Down Payments Could Stimulate Homebuilders ETFs]

SPDR S&P Homebuilders ETF

ETF Trends editorial team contributed to this post.