The slowing housing market is also seen as a drag on regional bank stocks and ETFs such as KRE. The he NAHB and Wells Fargo housing market index decreased to 60 points in November, the lowest level since the 59 recorded in August 2016. In contrast, the index showed a reading of 68 in October and a consensus reading of 67 among analysts. The eight point fall off was the biggest monthly drop since a 10-point fall in February 2014.
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The Federal Reserve’s tighter monetary policy and interest rate hikes have contributed to the spike in mortgage rates, which jumped above 5% in October.
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