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Home Builders Jump on Fed Rate Cut Expectations
The housing market might be cool, but builder stocks were hot Friday. Home builder stocks were having their best day since this summer as expectations that the Federal Reserve will cut interest rates shifted.
Two exchange-traded funds, the iShares U.S. Home Construction ETF and the State Street SPDR S&P Homebuilders ETF, were up 5.7% and 5.4%, respectively, in afternoon trading. Both were on pace for their largest percentage increase since July 22, according to Dow Jones Market Data.
It’s been a tough year for the industry, which has been contending with skittish home-buyers put off from the housing market by high rates and prices, as well as more competition from existing-home owners selling. The iShares ETF is down 4.2% this year, while the State Street fund is up 0.3%.
