The National Association of Home Builders/Wells Fargo sentiment gauge shot up to 64 this month for the first time since 2006 and it reflects the positive signs in payroll additions and low mortgage rates this year, Bloomberg reports. The boom in Home Builders confidence opens some opportunities for ETFs that track the segment to thrive.
In a statement, David Crowe, NAHB’s chief economist said “Builder confidence has been holding steady or increasing for five straight months. This upward momentum shows that our industry is strengthening at a gradual but consistent pace, with firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015.”
This positive outlook could drive a few ETFs that have already been on the rise. iShares U.S. Home Construction (ITB) is the most actively traded ETF that tracks the industry and has been above its 200 day moving average but dipped below its 50EMA. ITB is up 0.15% today on the news.