real-time news and commentary for investors
Monday, Oct 7
CIBC: Home construction set to surge
- Forget recent signals of softness, says CIBC. New home starts will hit 1.2M in 2014, up from 930K this year. At least part of the increase will be due to homebuyers rushing to purchase before mortgage rates and prices rise too much further.
- Among the hurdles cited by homebuilders is access to credit being too tight, but there are signs mortgage standards are beginning to ease. One reason: The drying up of refinance activity has banks looking to increase their new home loan business.
- Homebuilder ETFs: XHB, ITB, PKB.