July 22, 2020, 12:08 pm EDT
(Featured picture is from Pulte Homes)
Home Builders Surge
Home builder industry jumped again as existing home sales surged 20.7% in June over May to a seasonally adjusted annual rate of 4.72 million, according to the National Association of Realtors. As we mentioned recently, lower mortgage rates and re-opening markets after months of shutdown due to virus gave buyers a opening window to buy houses.
NVR +11%, PHM +5%, LEN, DHI +4%, are coming together to show strong demand from investors to get into home builder stocks. Its ETF XHB +3% with a follow-through confirmation after last week’s breakout. Please refer to “Weekly Review: Tight Consolidation with Sector Rotation” for details.