Homebuilder stocks look good, but bullish sentiment is on the rise
Homebuilders have been performing well on the New York Stock Exchange, but two market analysts showed up on CNBC’s “Squawk on the Street", dashing hopes that builder stocks are heading for greener pastures.
In a rising interest rate environment and market uncertainty on future Federal Reserve actions, investors should be particularly cautious when it comes to homebuilder stocks, two market pros told CNBC's "Squawk on the Street" Monday.
"The builders are pretty much a one-trick pony these days," said Megan McGrath, senior homebuilder analyst at MKM Partners. "They're really trading off of rates. If you have a view on rates that you really like, you can trade these but otherwise I don't think they're investable right now."