Wilbur Ross quits Ocwen Financial

Wilbur Ross quits Ocwen Financial

Distressed asset investor bringing his magic to Bank of Cyprus

Dustin Johnson levels blockbuster claims at title attorneys

Is Nat Hardwick the fall guy?

CFPB proposes 7 big changes to foreclosure process for mortgage servicers

Adds guidance on extended borrower protections
W S
Investments / The Ticker

Homebuilding stocks react to higher-rate environment

The change came just as builders gained momentum

Construction photo
/ Print / Reprints /
| Share More
/ Text Size+

Homebuilders still have a lot going for them as inventory levels subside, creating a potential need for home construction in various markets.

But the rising rate environment is having an impact on homebuilder stocks, even if its not exactly a death knell for improvements in the sector.

Investorplace has more on how rising Treasury yields are impacting builders:

Since the homebuilders topped in May, the XHB is roughly 9% lower; Treasury yields have rallied roughly 35% during the same time period. To be sure, the higher-rate environment is not only weighing on the homebuilders, but across the spectrum of interest-rate-sensitive instruments. Eventually, this also will hit the broader stock market, although beyond the medium-term, rising rates and a strong dollar are positive signs for the economy.

Source: Investorplace
Read full story

Recent Articles by HousingWire Staff

Comments powered by Disqus