Seeking Alpha

Builder sentiment weaker than hoped

The iShares DJ U.S. Home Construction ETF (ITB +0.1%) gives back its early gain after a weaker-than-expected report from the National Association of Home Builders shows builder sentiment higher by a point to 47, but falling well short of expectations for 50.

Toss the weather into continuing difficulties finding labor and lots, and higher material costs as reasons, says NAHB Chairman (and builder) Kevin Kelly.

Index components: Current sales conditions up a point to 52. Buyer traffic up two points to 33. Expectations for the next six months down a point to 53. It's a diffusion index - anything above 50 means more view conditions as good than poor.

The more home improvement and supply-related XHB +0.5%.

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Comments (3)
  • june1234
    , contributor
    Comments (3408) | Send Message
    Lumber futures going south too, another 6000 layoffs from JPM mortgage depts, first time home buyer mtg apps down from 43 to 27% etc. etc
    17 Mar 2014, 12:28 PM Reply Like
  • Darren McCammon
    , contributor
    Comments (2346) | Send Message
    And the reo to rental crowd is actively reducing exposure to the sector. Slowing purchases, selling non-core holdings, floating debt issues or spin-offs, etc.
    17 Mar 2014, 12:34 PM Reply Like
  • mcoll3608
    , contributor
    Comments (3) | Send Message
    Is this a temporary blip down nationwise?
    It's hard to see a slow down, looking from the Houston Metro area. Here it's speed
    ahead. Housing prices are straight up.
    17 Mar 2014, 02:44 PM Reply Like
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