ITB is up almost 24% year-to-date while XHB is higher by 13.6%. Housing industry experts also argue that higher rates reflect an improving economy and wage growth, which could also help the housing market in the long run. Still, some market observers are worried that the rising mortgage rates could dissuade borrowers to move into new homes.

“The group took a hit on Thursday after Sears announced it would sell Alexa-enabled appliances on Amazon. Shares of some retail names like Home Depot and Lowe’s fell sharply on Thursday following the announcement,” according to CNBC.

Housing data points remain solid.

“Home builders are putting up more houses to meet strong demand across the country. Builders started 1.215 million homes annually through June in the U.S., according to a U.S. Commerce Department report Wednesday. The amount, which is seasonally adjusted, represents an 8.3 percent gain from the previous month and a 2.1 percent rise over the June 2016 starts,” reports the Houston Chronicle.

Related: 3 Strategic Reasons Advisors Should Adopt Factor-Based ETFs

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.