Homebuilders slide amid weak sales data

|By:, SA News Editor

The homebuilders (ITB -1.1%), (XHB -0.8%) are outliers to the downside as the NAR's October Pending Home Sales Index slips to its lowest since December 2012. At 102.1, the index is also 1.6% below its level of a year ago. A bright spot in the data is its age. October, shutdowns, and debt defaults were a long time ago.

The report has sent interest rates lower: At 2.77% just before the release, the 10-year yield is now 2.73%. TLT +0.4%, TBT -1%

Individual homebuilders: Toll Bros. (TOL -1.3%), NVR (NVR -0.9%), KB Home (KBH -2.8%), Lennar (LEN -1.7%), Pulte (PHM -1.9%)

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