Despite home improvement retailer shares rising to a record high, homebuilder stocks have fallen more than 20% on signs that some investors are too pessimistic and that high mortgage rates could derail new construction.
Homebuilders are driving into their peak season, with more than 75% of annual homebuilder returns historically generated in the November-to-January time frame due to growth in demand in advance of the upcoming spring selling season.
A flurry of economic data released Thursday pushed homebuilder stocks higher, while other mortgage firms suffered from the pains of rising rates and uncertainty about the Fed's commitment to quantitative easing.
It doesn't look good for homebuilders share prices in the near term. Recent action in the iShares Dow Jones US Home Construction fund indicates weakness in the sector and these stocks are starting to break down.
One by one, they filed into the city council chambers. They took their seats and waited their turn, and once there weren’t any seats left, they moved to the seldom-used overflow seating. When the overflow seating filled, they moved to the civic center so they could watch the meeting on a closed-circuit feed..
It’s a new world, and in this new world, data is more crucial than ever. Getting the best data possible, and then being able to interpret that data to improve performance, will be a competitive edge that no company in the mortgage finance space can do without in the current environment of volume contraction. Read More
Only seven or eight years ago, mortgage fraud was one of the top stories in the industry. It was quite common to see stories estimating losses in the millions, with some experts suggesting that these numbers were only the tip of the iceberg. Lenders and their partners scrambled to strengthen their fraud-prevention strategies. Read More