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Despite better Existing Home Sale numbers for May, homebuilder stocks are taking a hit amid...

Despite better Existing Home Sale numbers for May, homebuilder stocks are taking a hit amid worries about the Fed tapering its stimulus program: M/I Homes (MHO -6%), PulteGroup (PHM -8.2%), Ryland (RYL -8.2%), Toll Brothers (TOL -5.4%), D.R. Horton (DHI -7.1%) and KB Home (KBH -6.1%).
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Comments (9)
  • Jeffry Chmielewski
    , contributor
    Comments (600) | Send Message
     
    May housing inventory was lowest since 2002! Builders getting punished on rates but inventory is the bigger driver of new home sales now... Builders starting to look very interesting here.
    20 Jun 2013, 12:24 PM Reply Like
  • 7736151
    , contributor
    Comments (75) | Send Message
     
    Ii wonder if there is a correlation between house prices and mortgage rates, e.g. If rates keep on rising would house prices would continue to rise? That answer will tell us if home builders are Interesting or not.
    20 Jun 2013, 12:46 PM Reply Like
  • Tack
    , contributor
    Comments (13562) | Send Message
     
    77:

     

    The answer to your question has been demonstrated repeatedly in the past. Rates, sales and prices all rise in tandem until such time as the fed raises rates so high, as to damp down the economy.
    20 Jun 2013, 02:04 PM Reply Like
  • Jeffry Chmielewski
    , contributor
    Comments (600) | Send Message
     
    Prices don't need to rise to drive home building when there is an inventory shortage.
    20 Jun 2013, 12:49 PM Reply Like
  • june1234
    , contributor
    Comments (2659) | Send Message
     
    must be that housing recovery they keep talking about
    20 Jun 2013, 12:53 PM Reply Like
  • ClintonSPX
    , contributor
    Comments (187) | Send Message
     
    will be no taper till next year
    20 Jun 2013, 02:18 PM Reply Like
  • jsIRA
    , contributor
    Comments (2690) | Send Message
     
    Buy-on-dip still works. I don't see home building stocks are turning bear even most are now down over 20% from year highs today.

     

    If the US economy is really in bad shape, Fed will not reduce bond buying and will not announce the exit of QE program by the middle of 2014.
    20 Jun 2013, 03:08 PM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    There is no "Fed Exit".......ever. Buy major dips in metals or dividend paying stocks and you'll be fine.
    20 Jun 2013, 03:39 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Higher mortgage rates = price moderation, if there has been strong price gains previously. Also, 20% down used to be the norm. Many have paid off mortgages that were originally taken out above 8%. The Conventional 97 (new 3% down product for those with 680 scores or better) from Frannie ought to be nixed immediately.
    20 Jun 2013, 03:53 PM Reply Like
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