Another related ETF on the move higher is the PowerShares Dynamic Building & Construction Portfolio (NYSEArca: PKB). PKB, on the other hand, takes a larger focus on consumer discretionary and materials companies.
Mortgage rates may continue to rise as investors anticipate a faster economic expansion and inflation from President Trump’s policies. The housing market has been strengthening before the jump in mortgage rates as hiring and healthier finances drove demand.
“The National Association of Home Builders February survey, released Wednesday, posted numbers that fell month over month. While the estimate was for “no change,” wrote The Lindsey Group’s Peter Boockvar, the index fell two points to 65,” according to CNBC.
Traders looking for a bearish play on homebuilders stocks can consider the Direxion Daily Homebuilders & Supplies 3x Bear Shares (NYSEArca: CLAW), which attempts to deliver triple the daily performance of the index XHB tracks.
For more information on the housing sector, visit our homebuilders category.