The recent losing streak may be attributed to profit-taking in one of the market’s hottest sectors, along with growing concern over rising mortgage rates as yields on benchmark 10-year Treasuries now hover around 3%
“Housing and all of its related services contribute nearly 18 percent of total U.S. gross domestic product, so any slowdown in the sector could reverberate through the whole equity market, especially homebuilders,” reports CNBC.
This year, investors have pulled $972.48 million from ITB as of May 23rd.
For more information on the housing market, visit our homebuilders category.