FYI: Historically, the housing market has been a canary in the coal mine, a leading indicator for rough times to come in the broader economy. Right now, that bird isn't looking so healthy.
Annual home sales have suffered nine-straight months of declines, as reported by CNBC, as housing affordability continues to weigh on potential homebuyers. Meanwhile, housing starts fell more than expected last month, as rising mortgage rates, higher prices, hurricanes and other climate disasters weighed on homebuilding activity.
It's been a rough year for homebuilder ETFs as well, as the iShares U.S. Home Construction ETF (ITB) and the SPDR S&P Homebuilders ETF (XHB) have fallen year-to-date 31% and 24%, respectively.
Regards,
Ted
https://www.etf.com/sections/features-and-news/etf-week-tale-2-homebuilder-fundsBloomberg Article:
https://www.bloomberg.com/news/articles/2018-10-25/homebuilders-finally-see-some-relief-after-wall-street-upgrade
