Homebuilders take massive hit on HW 30
Dip in existing-home sales fuels HW 30 decline
Homebuilders and real estate websites took a massive hit Monday on the HW 30 as sales of existing homes continued to fall.
Existing-home sales dropped 1.9% in September following a downwardly revised reading for August as higher mortgage rates and weak consumer confidence stalled home buying.
Home sales fell in three of the four reported regions, with only the West showing gains.
"The housing market is still moving forward, but not at a robust rate," said analysts for Econoday. "The Dow is moving up from opening following today’s report."
As a result of declining existing-home sales, homebuilder D.R. Horton (DHI) posted the biggest drop, falling 2.01% Monday, and also declining nearly 9% year-to-date.
Both stocks took a beating Friday, closing down 2.54% and 3.76%, respectively.
Home improvement stocks posted mix results.
Home Depot (HD) felt some pressure from home prices and falling existing-home sales, finishing the day down a slight 0.19%.
On the other hand, Lowes (LOW) finished a bit stronger, up 0.66% for the day.