Homebuilder-related ETFs extended their losing streak, with home constructions stocks suffering through their worst seven-day run in two years.
The iShares U.S. Home Construction ETF (NYSEArca: ITB), the largest homebuilder-related ETF, was 1.0% lower Wednesday and declined 6.1% over the past week.
James Stack of Stack Financial Management recently said people “don’t want to hear talk” about housing prices “being a little bit bubblish” and suggested “it is 2005 all over again in terms of the valuation extreme, the psychological excess and the denial,” Bloomberg reports.
Brian Lazorishak, senior portfolio manager for Stack Financial Management, argued that 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 2.72%.
“It does look a little more serious than anything we’ve seen in a while, but it’s too soon to pass much judgment,” Lazorishak said.