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Homebuilders slammed for ninth straight day as mortgage rates climb

Published 02/02/2018, 06:45 PM
© Reuters.  Homebuilders slammed for ninth straight day as mortgage rates climb
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  • Today's stock market losses were nothing new for the battered homebuilding sector, which fell for the ninth straight session and has tumbled 7% this year vs. the S&P 500's 3.2% YTD gain.
  • The average 30-year fixed mortgage rate, when tends to track the path of the benchmark 10-year Treasury yield, hit 4.22% - highest in a year - according to the latest Freddie Mac weekly survey.
  • An increase to 5% from 4% for a 30-year mortgage would hike monthly bills by 12%, so investors are worried that higher rates will make housing too expensive for too many buyers.
  • Homebuilders, which were soaring as recently as December, were nailed this week: HOV -11.6%, LEN -11.5%, CAA -11.3%, PHM -11%, DHI -7.9%, KBH -7.4%, NVR -6.4%, BZH -6.2%, MDC -6.2%, TOL -5.9%.
  • ETFs: XHB, ITB
  • Now read: KB Home: Tread Carefully


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