iShares U.S. Home Construction ETFNYSEARCA
Thu, Dec. 8, 10:25 AM
- Average fixed mortgage rates rose for the sixth straight week, hitting new YTD highs, according to the latest weekly survey from Freddie Mac.
- The 30-year fixed averaged 4.13% in the latest week, up from 4.08% a week ago, and the 15-year fixed-rate mortgage averaged 3.36%, up from last week's 3.34%; both are at 2016 highs.
- A year ago, the 30-year and 15-year fixed rates averaged a respective 3.95% and 3.19%.
- ETFs: XHB, ITB
Wed, Nov. 30, 12:11 PM
- Those getting mortgages prior to last few weeks were "likely the last" to lock in at historically low rates, says the NAR's Larry Yun following this morning's disappointing Pending Home Sales report.
- That report was for October, but in more current news, mortgage applications dove another 9.4% in the week ended Nov. 25 (seasonally adjusted). They've been on a downward track for a few weeks, with the speed mostly picking up amid the sharp rise in rates since the election.
- Turning to rates, the 10-year Treasury yield is carving out a new 12-month-plus high, up 11 basis points to 2.40%.
- The S&P 500 is flat, but the ITB is down 1.8%, and XHB 1.2%.
- Toll Brothers (TOL -2.1%), Lennar (LEN -3.4%), Pulte (PHM -1.8%), D.R. Horton (DHI -3.8%), M.D.C. Holdings (MDC -2.1%), Taylor Morrison (TMHC -1.5%)
Wed, Nov. 23, 11:32 AM
- Average rates for 30-year fixed mortgages breached 4% and reached their highest levels since July 2015, according to the latest Freddie Mac survey.
- The 30-year fixed averaged 4.03% for the week ending Nov. 23, up from last week's 3.94% - which was a huge spike from 3.57% the week before - and the 15-year fixed-rate mortgage averaged 3.25%, up from last week when it averaged 3.14%.
- At this time a year ago, the 30-year and 15-year fixed rates averaged a respective 3.95% and 3.18%.
- ETFs: XHB, ITB
Thu, Nov. 17, 8:57 AM
- On the face of it, October's strong housing starts number - the fastest pace in nine years - might be bullish for the homebuilders, but that industry will also have to deal with rising interest rates.
- The 10-year Treasury yield is up another 3 basis points today to 2.25%, and mortgage applications fell sharply last week amid the post-election gain in interest rates.
- XHB +1.4% premarket; ITB no trades
Tue, Nov. 15, 7:45 PM
- The big gains in infrastructure stocks in anticipation of government spending on roads and bridges in a new Trump administration have some analysts warning that the rally is "getting long in the tooth."
- Among relevant companies up at least 12% since last Tuesday's election: PWR, FLR, VMC, JEC, MLM, KBR, ACM, SUM, EXP.
- One former infrastructure bull, Daniel Clifton of Strategas Research, thinks lofty expectations are now priced into the group, adding that the belief that fiscal conservatives in Congress who have long opposed increasing the deficit would suddenly pass a trillion dollars in spending has become too optimistic.
- Clifton also says Trump’s infrastructure plan in its current form relies entirely on private financing and “has little to do with the actual stocks that are rallying.”
- Greg Valliere, chief global strategist at Horizon Investments, reminds that "Washington moves slowly on huge projects like this, and there’s a lag time on the economic response."
- ETFs: XHB, ITB, XLI, PHO, IYT, VIS, XTN, FIDU, IYJ, PKB, FXR, UXI, RGI
Wed, Oct. 26, 10:22 AM
- September new home sales at a seasonally adjusted annualized rate of 593K were up 3.1% from August's 575K. The August print however, was revised down from what had originally been reported as a blowout level of 659K. Still, the September number was the 2nd best of the post-crisis recovery.
- On a year-over-year basis, the Sept. pace was up 29.8%.
- The homebuilder ETFs: ITB flat, XHB -0.15%
Wed, Oct. 19, 8:38 AM
- September housing starts at a seasonally adjusted annualized rate of 1.047M fell 9% from August. They were also 11.9% below the pace of September one year ago.
- The numbers may not be as weak as the headline suggests though. Single-family starts of 783K rose 8.1% from August. It was a big dip in highly volatile multifamily starts (defined as 5 units or more) which led to the overall decline.
- Building permits in September of 1.225M rose 6.3% from August and 8.5% from year-ago levels.
- Relevant ETFs: ITB, XHB
- Previously: Housing starts fall short in September (Oct. 19)
Mon, Oct. 17, 10:04 AM
- The homebuilders have mostly had a rough run of it since interest rates began rising late this summer, but Lennar (NYSE:LEN) has suffered more than most peers, down 13.75% over the last three months vs. a 7.8% decline for the ITB.
- It's an outlier to the upside today though, with a 1.25% advance on the back of an upgrade to Buy at Buckingham Research.
Mon, Sep. 26, 10:26 AM
- New home sales in August of a seasonally-adjusted annualized rate of 609K fell 7.6% from July's blistering pace of 659K, but were up 20.6% on a year-over-year basis.
- Inventory of 4.6 months at the current sales pace rose from 4.2 in July. One year ago in August, it was 5.2 months.
- Sales in the Northeast of 23K fell from 35K; Midwest 81K vs. 83K; South 343K vs. 391K; West 162K vs. 150K.
- Full report
- Homebuilders are lower along with the rest of the market. ITB -0.3%, XHB -0.5%
Tue, Sep. 20, 12:25 PM
- Lennar (NYSE:LEN) was initially higher following this morning's earnings beat, but has turned lower by 4.3% amid cautious earnings call comments on margins.
- Also at work is today's housing starts report which showed an unexpected sharp decline from July to August, with single-family starts dropping to a 10-month low.
- ITB -1.4%, XHB -0.9%
- Hovnanian (HOV -0.9%), KB Home (KBH -1.4%), Pulte (PHM -3.2%), D.R. Horton (DHI -1.2%), Toll Brothers (TOL -1.4%), Taylor Morrison (TMHC -2.5%), LGI Homes (LGIH -1.3%)
Mon, Sep. 19, 12:01 PM
- The NAHB Index jumped six points to a one-year high of 65 this month vs. expectations for just a marginal gain.
- "With the inventory of new and existing homes remaining tight, builders are confident that if they can build more homes they can sell them," says NAHB Chief Economist Robert Dietz.
- The Lindsey Group's Peter Boockvar calls this month's print "ebullient," but says the key to sustain things will be the behavior of the first-time homebuyer. We're at a 50-year low in the homeownership rate - will potential first-timers continue to prefer renting? The area most in need of new homes are those priced below $250K (to better compete against renting), but margin issues don't make this a terribly profitable segment for homebuilders.
- ITB +1.9%, XHB +1.5%
- Toll Brothers (TOL +1.4%), PulteGroup (PHM +3.1%), D.R. Horton (DHI +2.5%), Lennar (LEN +2.5%), Hovnanian (HOV +2.4%)
Tue, Aug. 23, 10:13 AM
- New home sales flew past expectations in July as they rose 31% on a year-over-year comparison. Sales were higher across all regions of the U.S.
- The median price of a house sold during the month was $294,600. Inventory fell to 4.3 months at the current sales pace.
- June's mark was revised down to 582K from 592K.
- The iShares Dow Jones U.S. Home Construction ETF (NYSEARCA:ITB) is up 1.3% after the development. The S&P Homebuilders ETF (NYSEARCA:XHB) is 1.2% higher.
- Toll Brothers (TOL +2.3%) and KB Home (KBH +2.9%) are notable movers in early trading.
Tue, Jul. 26, 10:16 AM
- June new home sales came in at a seasonally-adjusted annualized rate of 592K, up from May's rate of 572K, and the fastest pace since February 2008.
- Expectations had been for 560K.
- The median price of $306.7K was up 6% Y/Y, and inventory fell to 4.9 months at the current sales pace.
- New home sales in Q2 were up 10% from Q1.
- The ITB popped higher on the news, but has retreated a bit since, now up 0.2% on the session. XHB +0.4%
- Toll Brothers (TOL +0.2%), Hovnanian (HOV +0.8%), Lennar (LEN -0.7%), KB Home (KBH +0.1%), PulteGroup (PHM +0.1%)
Sun, Jul. 3, 2:30 PM
- via Morgan Stanley:
- "The bottom line is that Brexit is ultimately a political crisis and one that is not likely to be resolved in a hurry. There will be many twists and turns in the path to ultimate resolution.
- "There may yet be circumstances that give rise to bigger systemically risky events. For now, we don't think we are quite there and we feel that the current architecture of the global financial system is more resilient than it used to be when the last big storm hit us.
- "That said, caution is clearly warranted. The global economy was not in great shape pre-Brexit and is now worse. There is likely to be more downside to come, particularly in European equities and in GBP.
- "We see US assets across the spectrum - stocks, FX, credit and government bonds - as relative safe havens, and parts of securitized products, particularly US resi credit and broad exposure to US housing, as being relatively insulated."
- ETFs: FXE, XHB, ITB, EUO, REZ, ERO, EUFN, DRR, CEE, TRF, PKB, ULE, GUR, EUFX, ESR, URR, IFEU, HOML, HBU, HBZ, NAIL, HOMX, CLAW, DBSE, FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK, QGBR, HEWU
Thu, Jun. 23, 10:27 AM
- May new home sales came in at a seasonally adjusted annualized rate of 551K. This was down 6% from April's rate of 586K. April had originally been reported at the blowout level of 619K.
- On a year-over-year basis, May's pace was up 8.7%.
- Sales in the northeast of 34K fell from 51K in April; midwest of 70K vs. 62K; south 323K vs. 326K; west 124K vs. 147K.
- Full report
- The gain in the homebuilders (ITB +0.6%) today is roughly inline with the S&P 500.
Tue, Jun. 21, 7:14 AM
- iShares S&P Small-Cap Value ETF (NYSEARCA:IJS) - $0.380.
- iShares Mortgage REIT Capped ETF (NYSEARCA:REM) - $0.274.
- iShares U.S. Utilities ETF (NYSEARCA:IDU) - $0.900.
- iShares U.S. Home Construction ETF (NYSEARCA:ITB) - $0.029.
- iShares Core S&P 500 ETF (NYSEARCA:IVV) - $0.998.
- Payable June 27; for shareholders of record June 23; ex-div June 21.