Home Builder Confidence at New Highs, Investors Bullish on XHB
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Home builder confidence is the highest since May 2007, according to the National Association of Home Builders/Well Fargo Housing Market Index. The index showed that confidence in newly built, single-family homes gained 5 points in May.
"Builders in many markets are reporting that buyer traffic and sales have picked back up after a pause this April," said Barry Rutenberg, chairman of the National Association of Home Builders. "It seems we have resumed the gradual upward trend in confidence that started at the beginning of this year, as stabilizing prices and excellent affordability encourage more people to pursue a new-home purchase."
Investors, it would seem, have had a similarly high level of confidence in homebuilder stocks. The SPDR S&P Homebuilders ETF (NYSE: XHB) is up over 20 percent year-to-date, making it one of the top growth sectors in the S&P 500. XHB is up 1.5 percent on the session.
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"Builders in many markets are reporting that buyer traffic and sales have picked back up after a pause this April," said Barry Rutenberg, chairman of the National Association of Home Builders. "It seems we have resumed the gradual upward trend in confidence that started at the beginning of this year, as stabilizing prices and excellent affordability encourage more people to pursue a new-home purchase."
Investors, it would seem, have had a similarly high level of confidence in homebuilder stocks. The SPDR S&P Homebuilders ETF (NYSE: XHB) is up over 20 percent year-to-date, making it one of the top growth sectors in the S&P 500. XHB is up 1.5 percent on the session.
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