SPDR Series Trust SPDR Homebuilders ETF (ARCA: XHB)

Dernières nouvelles pour SPDR Series Trust SPDR Homebuilders ETF (ARCA:XHB)

SPDR Series Trust SPDR Homebuilders ETF

Consumer Cyclical

Industrials

In seeking to track the performance of the S&P Homebuilders Select Industry Index (the index), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the homebuilders segment of the S&P Total Market Index (S&P TMI).

Williams-sonoma Inc

Carlisle Cos Inc

Johnson Controls International Plc

Owens Corning

Trane Technologies Plc

Carrier Global Corp.

Lennox International Inc

Pultegroup Inc.

Topbuild Corp

Toll Brothers Inc

Masco Corp.

Home Depot Inc/The

Builders Firstsource Inc

Lowe'S Cos.Inc.

Taylor Morrison Home Corp

Installed Building Products Inc

Allegion Plc

Ao Smith Corp.

Tempur Sealy International Inc

Skyline Champion Corp

Advanced Drainage Systems Inc

SPDR S&P Homebuilders ETF

The Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) is deepening its investment in serving professional contractors with a major acquisition by its distribution arm, SRS Distribution Inc.
SRS announced Monday that it has signed a <a target="_blank" href="http://benzinga.com/pressreleases/25/06/n46166002/the-home-depot-enters-into-agreement-for-srs-distribution-to-acquire-gms" rel="noreferrer noopener">definitive agreement to acquire</a> GMS Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GMS#NYSE">GMS</a>), a top distributor of specialty building products across North America.
The deal values GMS at approximately $4.3 billion in equity and $5.5 billion in enterprise value, with a cash offer of $110 per share. The acquisition will be funded through a mix of available cash and debt.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/25/06/46023852/home-depot-eyes-gms-acquisition-setting-stage-for-bidding-war-with-qxo/" rel="noreferrer noopener">Home Depot Eyes GMS Acquisition, Setting Stage For Bidding War With QXO</a>
It is not expected to affect The Home Depot&#8217;s plan to return to a 2.0x leverage ratio by the end of fiscal 2026. The companies expect the transaction to close by the end of fiscal 2025.
The deal is designed to broaden SRS&#8217;s capabilities and service offerings for residential and commercial construction projects by adding GMS&#8217;s portfolio of drywall, ceilings, steel framing, and related products.
The move expands The Home Depot&#8217;s reach in the pro contractor space, building on its earlier acquisition of SRS in 2024 to establish a leadership position in specialty distribution.
The transaction is expected to be accretive to adjusted earnings per share in the first year following closing, excluding synergies.
The acquisition is a significant step in The Home Depot&#8217;s multi-pronged strategy to dominate distribution in categories that extend beyond retail. GMS&#8217;s presence in core building materials complements SRS&#8217;s existing verticals in roofing, landscaping, and pool supplies.
The companies will operate from more than 1,200 locations and utilize a fleet exceeding 8,000 delivery trucks to service job sites across the U.S. and Canada.
SRS CEO Dan Tinker noted the scale and service capabilities the merger unlocks for both residential and commercial customers. Ted Decker, chair, president, and CEO of The Home Depot, emphasized the proven success of the SRS platform and said this move would create further opportunities to integrate and grow service offerings for pro clients.
John C. Turner, Jr., CEO of GMS, and his senior leadership team will continue to lead the business post-acquisition under the SRS umbrella. Turner said joining SRS and The Home Depot provides an opportunity to accelerate GMS&#8217;s mission while expanding the value delivered to contractors across North America.
As of May 4, Home Depot held <a target="_blank" href="https://www.benzinga.com/news/earnings/25/05/45518559/home-depot-flags-tariff-and-supply-chain-risks-in-risk-statement-but-does-not-revise-outlook" rel="noreferrer noopener">$1.369 billion</a> in cash and equivalents.
Related ETFs: iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>), SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>).
Price Action: HD shares are trading lower by 0.19% at $368.05, and GMS is up 11.8% at $108.83 at last check Monday.
Read Next: &nbsp;
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</ul>
Photo via Shutterstock

News

Movers

iShares Dow Jones US Homenstruction Index Fund

Home Depot's Distribution Arm Expands With $5.5 billion GMS Deal

Economist Craig Shapiro has been calling for a national housing policy overhaul, as he believes the housing market is &#8220;rigged,&#8221; amid New York City mayoral candidate Zohran Mamdani&#8216;s ambitious housing reform agenda.
What Happened: In a detailed Substack <a href="https://substack.com/home/post/p-167096016">essay</a> and an X thread, the macro strategist at the Bears Trap Report, Shapiro, highlights how the housing market has become an &#8220;over-subsidized, under-scrutinized asset class in America.&#8221;
According to him, &#8220;Housing is no longer just shelter,&#8221; it's an asset class, and &#8220;It's time for a reset — one that unwinds the monetary premium embedded in home prices and redirects policy toward making shelter accessible again.&#8221;
This comes amid the rising popularity of the Democratic primary winner for <a href="https://www.benzinga.com/news/politics/25/06/46087359/zohran-mamdani-leads-nyc-mayoral-primary-andrew-cuomo-concedes-race">mayor of New York City</a>, Mamdani. Apart from affordable childcare, taxing the rich, free buses, and raising minimum wages, his ambitious agenda also includes a $70 billion dream of building 200,000 units of affordable housing and freezing rent on the city's nearly one million rent-stabilized apartments.
Meanwhile, Shapiro explains that housing policy in the U.S. is not just economic — it's political. The current regime benefits several powerful groups:
<ul class="wp-block-list">
<li>Homeowners who rely on home appreciation for retirement security.</li>
<li>Real estate agents and lenders earn more from higher prices.</li>
<li>Institutional landlords benefit from the limited supply and rising rents.</li>
<li>Local governments fear voter backlash if property values fall.</li>
</ul>
&#8220;And so, despite growing unaffordability, tax advantages for homeowners persist. Zoning laws continue to restrict supply. Investors still enjoy favorable treatment through 1031 exchanges and depreciation loopholes. All while 36% of Americans — renters — receive almost none of these benefits,&#8221; he adds.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I put together a long form post this morning on housing this morning on my substack (link in bio) Here are the highlights &#x1f3e1; The housing market isn't just broken — it's rigged. It's time we talk about the most over-subsidized, under-scrutinized asset class in America. Here's…
&mdash; Craig Shapiro (@ces921) <a href="https://twitter.com/ces921/status/1939437993242046832?ref_src=twsrc%5Etfw">June 29, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/real-estate/25/06/46088531/too-many-home-sellers-fewer-buyers-experts-predict-housing-prices-to-fall-in-2025-without-a-fed-put-in-place">Too Many Home Sellers, Fewer Buyers: Experts Predict Housing Prices To Fall In 2025 Without A Fed Put In Place</a>
Why It Matters: As a solution to the crisis, Shapiro advocates for a &#8220;Great Housing Reset&#8221; to shift the focus from housing as a speculative asset to affordable shelter.
It includes gradually phasing out mortgage interest deductions and capping capital gains exclusions for high-income earners on primary residences, eliminating 1031 exchanges for residential investment properties, and linking federal infrastructure funding to local zoning reforms that encourage multifamily housing.
Furthermore, he suggests redirecting federal support from homeowners to renters through universal housing vouchers and renter equity programs, believing these changes would lead to a &#8220;soft landing&#8221; for housing prices and a more equitable, accessible housing market.
Price Action: Here is a list of some<a href="https://www.benzinga.com/real-estate/25/06/46088531/too-many-home-sellers-fewer-buyers-experts-predict-housing-prices-to-fall-in-2025-without-a-fed-put-in-place"> real estate and housing exchange-traded funds</a> that investors could consider as a play on the evolving housing demand. 
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETFs</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>)</td>
<td>-4.85%</td>
<td>-0.06%</td>
</tr>
<tr>
<td>Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>)</td>
<td>0.23%</td>
<td>6.65%</td>
</tr>
<tr>
<td>Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>)</td>
<td>0.62%</td>
<td>6.12%</td>
</tr>
<tr>
<td>Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>2.06%</td>
<td>8.10%</td>
</tr>
<tr>
<td>iShares US Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>)</td>
<td>1.99%</td>
<td>8.28%</td>
</tr>
<tr>
<td>iShares Core US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USRT#NYSE">USRT</a>)</td>
<td>-0.95%</td>
<td>5.99%</td>
</tr>
<tr>
<td>DFA Dimensional Global Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFGR#NYSE">DFGR</a>)</td>
<td>5.12%</td>
<td>7.58%</td>
</tr>
<tr>
<td>SPDR Dow Jones REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWR#NYSE">RWR</a>)</td>
<td>-2.14%</td>
<td>3.79%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, ended higher on Friday. The SPY was up 0.50% at $614.91, while the QQQ advanced 0.34% to $548.09, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
After hitting a fresh record on Friday, the futures of the S&amp;P 500, Nasdaq 100, and Dow Jones indices were trading higher on Monday.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/25/06/46108861/microsoft-is-playing-chess-and-others-are-playing-checkers-dan-ives-says-msft-could-be-a-5-trillion-company-in-18-months">Microsoft Is &#8216;Playing Chess, And Others Are Playing Checkers:&#8217; Dan Ives Says MSFT Could Be A $5 Trillion Company In 18 Months</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

Politics

DFGR

iShares Trust Dow Jones US Real Estate Fund Index

SCHH

USRT

XLRE

US Housing Market Is 'Not Just Broken, It's Rigged,' Says Craig Shapiro As Mamdani Vows To Build 200,000 Publicly Subsidized Homes, Freeze Rent In NYC

The U.S. housing market is tilting sharply in favor of buyers, with a record 33.7% more sellers than buyers, according to the latest data.
What Happened: This imbalance, the largest since 2013, is driving expectations of a 1% decline in home prices by year-end, as <a href="https://www.redfin.com/news/sellers-vs-buyers-price-impact/">reported</a> by Redfin. 
With 1.9 million sellers compared to 1.5 million buyers, the market is experiencing its highest seller-to-buyer ratio since March 2020, fueled by high home prices, elevated mortgage rates, and easing "mortgage rate lock-in" effects.
Redfin's analysis highlights a stark buyer's market in 31 of the top 50 U.S. metros, with Miami, Florida, leading where sellers outnumber buyers nearly 3 to 1.
In contrast, Newark, New Jersey, remains the strongest seller's market, with home prices rising 12.2% year-over-year. Nationally, the median home sale price grew 1.6% to $431,931 in April, but Redfin predicts this growth will reverse as sellers compete for fewer buyers, expecting home prices to drop 1% by the end of the year as a result.
Bill Adams, Chief Economist at Comerica Bank, corroborates this trend, noting weaker-than-expected house price indices in April, with the S&amp;P CoreLogic Case-Shiller 20-City Index falling 0.3% month-over-month.
Adams points to &#8220;anemic&#8221; existing home sales and rising listings in May, alongside declining consumer confidence in June, as signals of a cooling market.
Despite some Federal Reserve governors advocating for rate cuts, Chair Jerome Powell's "wait-and-see" stance suggests no immediate relief from high rates, which averaged 6.73% in April. &#8220;Comerica forecasts for the Fed to hold rates unchanged in the second half of 2025,&#8221; said Adams.
See Also: <a href="https://www.benzinga.com/markets/25/06/46042382/mark-cuban-corrects-elizabeth-warren-as-she-slams-jnj-pfe-for-higher-prices-and-zero-taxes-on-big-ph" target="_blank" rel="noreferrer noopener">Mark Cuban Corrects Elizabeth Warren As She Slams JNJ, PFE For Higher Prices And Zero Taxes On Big Pharma: ‘PBMs Corrupt Healthcare&#8217;</a>
Why It Matters: Apart from benchmark house price indexes being weaker than expected in April, &#8220;the listings-to-sales ratio was the highest since 2016,&#8221; pointed Adams, also adding that &#8220;jobs data point to less labor demand.&#8221;
These variables, combined with the Fed&#8217;s stance to keep holding rates, could affect the housing demand, thus dampening the prices.
Price Action: Here is a list of some real estate and housing exchange-traded funds that investors could consider as a play on the evolving housing demand.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETFs</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>)</td>
<td>-4.94%</td>
<td>-2.56%</td>
</tr>
<tr>
<td>Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>)</td>
<td>3.55%</td>
<td>9.38%</td>
</tr>
<tr>
<td>Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>)</td>
<td>3.88%</td>
<td>9.22%</td>
</tr>
<tr>
<td>Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>4.89%</td>
<td>11.77%</td>
</tr>
<tr>
<td>iShares US Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>)</td>
<td>4.29%</td>
<td>11.16%</td>
</tr>
<tr>
<td>iShares Core US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USRT#NYSE">USRT</a>)</td>
<td>1.37%</td>
<td>9.47%</td>
</tr>
<tr>
<td>DFA Dimensional Global Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFGR#NYSE">DFGR</a>)</td>
<td>6.81%</td>
<td>9.58%</td>
</tr>
<tr>
<td>SPDR Dow Jones REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWR#NYSE">RWR</a>)</td>
<td>0.02%</td>
<td>6.97%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose on Tuesday. The SPY was up 1.10% at $606.78, while the QQQ advanced 1.53% to $539.78, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/25/06/46068345/blackrock-bets-big-on-defense-companies-amid-escalating-geopolitical-tensions-palantir-lockheed-martin-northrop-grumman-among-stocks-in-focus" target="_blank" rel="noreferrer noopener">BlackRock Bets Big On Defense Companies Amid Escalating Geopolitical Tensions: Palantir, Lockheed Martin, Northrop Grumman Among Stocks In Focus</a></li>
</ul>
Photo courtesy: Shutterstock

Real Estate

Too Many Home Sellers, Fewer Buyers: Experts Predict Housing Prices To Fall In 2025 Without A Fed Put In Place

<a href="https://www.benzinga.com/etfs">Homebuilder ETFs</a> posted modest gains Wednesday after a slight uptick in housing starts, but the rally may prove short-lived. 
During Wednesday afternoon trading, both the iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) and the SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) gained over 1%. Markets are possibly applauding May&#8217;s 0.4% increase in single-family housing starts. However, a deeper look shows cracks forming: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/topic/housing-market">Building permits</a> fell 2.7%</li>
<li>Builder sentiment hit a 2.5-year low</li>
<li>And <a href="https://www.benzinga.com/money/mortgage-rates">mortgage rates</a> remain near 6.8%. </li>
</ul>
These warning signs suggest structural headwinds ahead, with ETFs potentially facing renewed pressure if <a href="https://www.benzinga.com/news/25/04/44885312/for-sale-but-no-takers-the-us-housing-markets-awkward-standoff">affordability doesn't improve</a> and new construction momentum stalls.
Also Read: <a href="https://www.benzinga.com/real-estate/25/06/46000636/warren-buffetts-real-estate-business-sounds-alarm-overpriced-homes-need-reductions">Warren Buffett&#8217;s Real Estate Business Sounds Alarm: &#8216;Overpriced&#8217; Homes Need Reductions</a>
<h2 class="wp-block-heading">Homebuilder ETFs: Ride A Brief High?</h2>
Fewer building permits, a leading indicator of construction activity, and the lowest builder sentiment in two and a half years suggest a slowdown. 
While homebuilding starts indicate what&#8217;s currently being constructed, permits indicate what&#8217;s coming down the pike, and currently, what&#8217;s coming down the pike may be less.
ITB has heavy exposure to large U.S. homebuilders, including: D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>), Lennar (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>), and PulteGroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>). This ETF is extremely sensitive to current housing trends, as it is still off about 8% year to date.
XHB, with a more diverse mix of housing stocks, ranging from builders to furnishing and materials suppliers, tracked the advances but still trails broader market indices.
Simply put: construction momentum is leveling off. A declining permit number generally translates into fewer future starts. And the ETFs have been losing steam quickly this year, with ITB down more than 13% and XHB down 9% this year so far.
<h2 class="wp-block-heading">Confidence Cracks And Cost Pressures</h2>
National Association of Home Builders (NAHB) says builder sentiment for June fell to its lowest level since late 2022, per Reuters. Close to 37% of builders said they had provided price discounts or buyer concessions, a sign of slowing demand. High mortgage rates, sitting at around 6.8%, are also stressing affordability and holding potential buyers at bay.
For ITB and XHB ETFs, that will happen at the expense of short-term pops being trumped by long-term structural headwinds, particularly if the Federal Reserve takes its time cutting rates and supply costs stay high.
Investors must be cautious. The three factors — falling permits, declining sentiment, and still-elevated borrowing costs —could make this 1% rally a head fake. 
Without a sustained fall in mortgage rates or an improvement in permitting, homebuilder ETFs will continue to be under pressure.
Read Next:<a href="https://www.benzinga.com/news/25/06/45999567/uup-vs-the-herd-contrarian-dollar-etfs-in-focus-as-sentiment-hits-20-year-low"> </a>
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<li><a href="https://www.benzinga.com/news/25/06/45999567/uup-vs-the-herd-contrarian-dollar-etfs-in-focus-as-sentiment-hits-20-year-low">UUP Vs. The Herd: Contrarian Dollar ETFs In Focus As Sentiment Hits 20-Year Low</a></li>
</ul>
Image: Shutterstock

Sector ETFs

ETFs

Homebuilder ETFs Climb On Thin Foundation As Permits, Sentiment Slide

Capstone Holding Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAPS#NASDAQ">CAPS</a>) shares jumped on Friday after the building products distributor <a href="https://www.benzinga.com/pressreleases/25/05/ac45465443/capstone-reaffirms-100m-revenue-target-for-2025-accelerates-m-a-strategy-with-flexible-growth-cap" target="_blank" rel="noreferrer noopener">reaffirmed its 2025 financial targets</a>.
The firm, a building products distribution company, also posted a stable first-quarter update.
Illinois-based Capstone remains on track to reach $100 million in revenue and $10 million in adjusted EBITDA by year-end. A mix of organic growth and acquisitions fuels the momentum.
Capstone is pursuing multiple deals at 4–6x EBITDA, with up to 45% of consideration in non-cash terms, aimed at maximizing earnings while minimizing dilution. CEO Matthew Lipman said the company is positioned to double in size, supported by favorable deal valuations and strong operational performance.
Also Read: <a href="https://www.benzinga.com/news/25/04/44709544/exclusive-capstone-eyes-100-million-goal-with-southeast-expansion-targets-1500-acquisition-opportunities" target="_blank" rel="noreferrer noopener">Capstone Eyes $100 Million Goal With Southeast Expansion, Targets 1,500 Acquisition Opportunities</a>
Capstone secured a flexible equity line of credit to fund acquisitions, which it plans to use only for transactions immediately accretive to earnings.
The firm&#8217;s subsidiary, Instone, maintained margin targets and cost discipline, despite weather-related project delays in the Northeast and Midwest. Management expects a recovery in activity by Q3. Instone also expanded geographically and continued rolling out proprietary products like Toro and Pangea.
Capstone's acquisition strategy spans tuck-ins and new platforms, allowing it to scale quickly amid persistent housing demand.
Price Action: CAPS shares are trading higher by 82.53% at $3.03 premarket on Friday.
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</ul>
Image: Shutterstock

Guidance

BECN

CAPS

Capstone Takes Big Swing On Acquisitions, Shares Soar

WIIM

ARHS

RMAX

SNBR

TMHC

UEIC

Shares of homebuilders and housing-related stocks stocks are trading lower amid an overall market reversal on US-China trade tensions. Volatility in the 30-year mortgage rate could also affect housing demand.

The U.S. housing market saw a notable rebound in February, with single-family homebuilding jumping 11.4% to a seasonally adjusted annual rate of 1.108 million units, according to Reuters. This is welcome news for investors after a sluggish January, but does it mean <a href="https://www.benzinga.com/etfs">homebuilding ETFs</a> are poised for a turnaround? Let&#8217;s break it down.
Homebuilder ETFs: A Rough Year
If you've been holding homebuilder ETFs, it's likely been a bumpy ride:
iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>): Shares are down over 11% over the last 12 months. Assets under management (AUM) are also down around 20% in the same duration.
SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>): Shares are over 6% lower since last year. Also, AUM dipped almost 28% since March 2024.
Also Read: <a href="https://benzinga.com/analyst-ratings/analyst-color/25/03/44200622/lennar-kb-home-face-tougher-housing-market-goldman-sachs-cuts-forecast-amid-slowing-demand">Lennar &amp; KB Home Face Tougher Housing Market, Goldman Sachs Cuts Forecast Amid Slowing Demand</a>
Direxion Daily Homebuilders &amp; Supplies Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NAIL#NYSE">NAIL</a>): Shares dropped over 48% because of its leveraged exposure, while the AUM dropped 5% over the same time.
Higher mortgage rates, expensive housing prices, and uncertainty in the economy have damped the sector, making it hard for builders of homes to survive. NAIL&#8217;s decrease, a leveraged ETF, shows the level of volatility that has characterized the industry.
Notably, in December last year, <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42488357/homebuilders-2025-outlook-more-cautious-less-constructive-analyst-says">JPMorgan analysts adopted a cautious stance</a> for 2025, citing concerns over affordability, interest rates, and employment growth in the homebuilders market. Analyst Michael Rihault said home price growth is likely to moderate due to rising existing and new home supply in key markets. Also, JPMorgan foresees downside risks to gross margins, home sales pace, and return on equity, painting a challenging outlook for the sector.
A Solid Rebound, But One With Challenges
The housing industry has been fighting several headwinds—increasing building costs, labor shortages, and economic uncertainty, according to report by Reuters. President Donald Trump&#8216;s tariffs on Chinese imports have risen to 20%, and fresh tariffs on steel and aluminum are putting pressure. Builders are also facing labor shortages, fueled by immigration crackdowns.
On the other hand, there are a few encouraging signs. Mortgage rates, which rose as high as 7% at the beginning of the year, have begun to fall. More affordable rates would enhance affordability, and thus maybe demand. However, with building permits for upcoming construction down 0.2% in February, it is obvious that developers remain cautious.
Should You Invest In Homebuilder ETFs Now?
Although the industry is picking up, it is not clear if this bounce is the beginning of a long-term recovery or merely a short-term fluctuation. Investors need to look at their risk tolerance before they invest in homebuilder ETFs.
For risk-averse investors, ITB and XHB may provide exposure to the industry without too much volatility.
For aggressive investors, NAIL might be attractive, but its leveraged status involves large fluctuations in value.
The Bottom Line
The American housing market is precarious. The February boost in housing starts is a good sign, but tariffs, labor bottlenecks, and uncertainty are still in the air. Although homebuilder ETFs have faltered, things can turn around if mortgage rates keep falling and demand picks up.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/03/44382780/3-best-performing-semiconductor-etfs-since-last-gtc-and-why-this-time-is-different">3 Best-Performing Semiconductor ETFs Since Last GTC And Why This Time Is Different</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

NAIL

Homebuilder ETFs Await Clearer Signals Amid Housing Market Uncertainty

Seaport Global analyst Kenneth Zener upgraded PulteGroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>) from Sell to Neutral and <a target="_blank" href="https://www.benzinga.com/quote/phm/analyst-ratings" rel="noreferrer noopener">announced a price forecast of&nbsp;$100</a>.
The analyst writes that his ratings begin with long-term investors&#8217; benchmark relative weighting decisions, analyzing past cycle stock performance by quartiles (cycle time divided by 4).
Historical data suggests that absolute declines are still likely, but the sector&#8217;s risk-to-return profile flattens, providing an opportunity for early-cycle positioning with asymmetric returns when the cycle turns, adds the analyst.
The analyst says the sector&#8217;s historical decline of 41% over the past 21 cycles, with the upper half of stocks falling 24%, while the lower half dropped 49%. Returns in the third quartile fell 26%, with another 15% decline into the trough.
Zener expects the second quarter of FY25 to start to fall by 15%-20% in the first half of 2025 to lower the new supply.
The analyst says that starts of 993k (2-mth avg) vs. Trough 847k are poised to accelerate declines.
New Under-construction / Complete 40% above LT levels (390k vs ~280k), per the analyst.
The analyst remains cautious that sustained GDP growth will be benign to inflation.
In January, the company reported&nbsp;fourth-quarter revenues of $4.92 billion, topped the consensus of $4.635 billion, and adjusted EPS of $3.50,&nbsp;beating <a target="_blank" href="https://www.benzinga.com/25/01/43336230/why-pultegroup-stocks-are-rising-in-premarket-today" rel="noreferrer noopener">the consensus estimate of $3.27</a>.
Investors can gain exposure to the stock via iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) and SPDR Series Trust SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>).
Price Action: PHM shares are up 0.74% at $106.76 at the last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/03/44164783/logitech-projects-steady-growth-in-fy26-announces-2-billion-share-buyback-plan-more" target="_blank" rel="noreferrer noopener">Logitech Projects Steady Growth In 2026, Announces $2 Billion Share Buyback Plan</a></li>
</ul>
Image via Shutterstock.

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Equities

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Price Target

Analyst Ratings

Trading Ideas

Analyst Predicts Moderate Decline In Housing Starts For 2025, Upgrades PulteGroup

A flurry of new data is in and the housing market is flashing mixed signals from builders, buyers and analysts. Here&#8217;s what <a href="https://www.benzinga.com/markets/bonds/25/01/42963973/housing-demand-falls-as-average-30-year-mortgage-rate-above-7">you need to know.</a>
The Data: The Census Bureau and the Department of Housing and Urban Development December<a href="https://www.census.gov/construction/nrc/current/index.html"> housing data</a> released Friday was mixed with housing starts beating expectations while housing completions declined. 
Housing starts jumped 15.8% in December to a seasonally adjusted annual rate of 1.499 million, surpassing the estimate of 1.33 million and rising sharply from November's revised rate of 1.294 million. However, privately-owned housing units authorized by building permits in December declined 0.7% from November's rate of 1.493 million and fell 3.1% compared to December 2023.
Meanwhile, housing completions fell 4.8% in December to 1.544 million, potentially signaling that builders face challenges in finishing projects. Annual housing completions in 2024 rose 12.3% to 1.627 million. 
Read Next: <a href="https://www.benzinga.com/general/health-care/25/01/43041254/unitedhealth-ceo-highlights-hospitals-doctors-pharmas-role-in-soaring-health-care-costs">UnitedHealth CEO Highlights Hospitals, Doctors, Pharma&#8217;s Role In Soaring Health Care Costs</a>&nbsp;
According to <a href="https://www.nahb.org/news-and-economics/housing-economics/indices/housing-market-index">data released</a> Thursday from the National Association of Home Builders and Wells Fargo, U.S. homebuilders lowered their six-month outlook on prospective sales as buyers are discouraged by rising mortgage rates which crossed over the 7% mark last week.&nbsp;
However, homebuilder sentiment rose in January on optimism about current sales and prospective buyer traffic. The survey also attributed the rise in sentiment to the anticipation of likely more favorable regulatory conditions under the incoming Trump administration. 
Expert Ideas: Analysts from JPMorgan said on Friday that the firm remains optimistic on housing spending, despite surging mortgage rates.&nbsp;
The analysts view consumers as in the "acceptance phase" when it comes to interest rates and expect existing home sales to grind modestly higher, up from 40-year lows.&nbsp;
"More specifically, we believe 30-year mortgage rates being in the high 6 range is ‘okay,'" JPMorgan analysts wrote.&nbsp;
Stocks To Watch: Investors can track the U.S. homebuilders and construction through the IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) and the SPDR Series Trust SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>). 
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/25/01/43007213/experts-see-the-fed-on-hold-for-now-if-there-are-any-cuts-at-all-in-2025-after-decembers-sticky-consumer-inflation-report">Interest Rate Cuts &#8216;On Hold&#8230; If There Are Any At All In 2025&#8217; After December&#8217;s Sticky Consumer Inflation Report: Economists&nbsp;</a></li>
</ul>
This image was generated using artificial intelligence via MidJourney.

Econ #s

Housing Market: Builders Forge Ahead As Buyers Enter 'Acceptance Phase' On Rates

Investors may be underestimating Donald Trump&#8216;s potential push for fiscal discipline, making long-term bonds and rate-sensitive sectors an attractive bet, according to Bank of America&#8217;s chief <a href="https://www.benzinga.com/topic/expert-ideas">investment strategist Michael Hartnett. </a>
In his flagship &#8216;The Flow Show&#8217; report published Friday, Hartnett shifted to a bullish stance on bonds, stressing that the yield spike seen in recent months has created an opportunity. 
&#8220;20-year corporate bonds now yielding 6.3%, pension funds would be looking to park some of those gains in bonds,&#8221; he said, recommending investors &#8220;buy long duration bonds.&#8221;
Hartnett indicated the case for duration bonds – as commonly tracked by the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) – is strengthening as U.S. government spending slows, the Federal Reserve keeps a cautious stance on inflation, and yields approach peak levels.
<h3 class="wp-block-heading">Is The Bond Bear Market Peaking?</h3>
The past two years have been brutal for fixed-income investors. 
Higher-for-longer interest rates and rising deficits crushed bond prices, and since the Federal Reserve's 100-basis-point interest rate cuts, bonds have remained the worst-performing asset class. 
Yet Hartnett sees the tide turning.
Historically, rolling 10-year returns from U.S. Treasuries have never been negative over the past 90 years. The market has reached what he calls the &#8220;peak in &#8216;anything but bonds&#8217; trade of the 2020s.&#8221;
The technical backdrop also suggests stabilization. The 30-year Treasury yield has hit a double top at 5%, a level Hartnett believes represents strong resistance.
If yields retreat toward 4%, a diversified low-risk bond portfolio—comprised of Treasuries, investment-grade debt, high-yield bonds, and emerging market credit—could generate 11%-12% annualized returns, Hartnett highlighted.
A higher-risk allocation, with greater exposure to junk bonds and preferred securities, could yield up to 15%.
<h3 class="wp-block-heading">Trump's Fiscal Shift </h3>
As Hartnett highlighted, the U.S. budget deficit has risen to $7.3 trillion, fueling a 50% surge in nominal GDP, with government spending contributing significantly to economic growth.
Yet, according to the expert with the Fed prioritizing inflation control and Trump likely pushing for spending cuts, deficits could shrink, reducing upward pressure on yields. 
&#8220;We say Trump&#8217;s need for &#8216;smaller government&#8217; = &#8216;twin peak&#8217; in 5% bond yields,&#8221; Hartnett said.
Scott Bessent, Trump's nominee for Treasury Secretary, made it clear during his Senate confirmation hearing on Thursday that tackling government spending <a href="https://www.benzinga.com/government/regulations/25/01/43041207/5-things-investors-need-to-know-about-scott-bessents-economic-policies-as-he-faces-senate-grilling-for-treasury-job">will be a top priority.</a>
&#8220;We have a spending problem,&#8221; he said, emphasizing the need for significant reductions in government outlays.
Bessent indicated runaway spending as a key reason he joined the Trump campaign, signaling his commitment to aggressive fiscal tightening. 
&#8220;One of the things that got me out from behind my desk and my quiet life in this campaign was the thought that this spending is out of control,&#8221; Bessent said.
<h3 class="wp-block-heading">The Bond Market's Attractive Risk-Reward Profile</h3>
At current levels, the bond market presents what Hartnett describes as a &#8220;very good&#8221; risk-reward profile. 
A scenario where yields drop 100 basis points (1 percentage point) could generate strong returns, while even a rise in yields may not severely dent total performance. 
With yields near 5%, the worst may be over for bonds, according to Hartnett&#8217;s calculations. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Portfolio Type</th>
<th>Current Yield (%)</th>
<th>Duration</th>
<th>Convexity</th>
<th>1-Year Return (If Yields Drop 100bps)</th>
<th>2-Year Return (If Yields Drop 100bps)</th>
<th>1-Year Return (If Yields Rise 100bps)</th>
<th>2-Year Return (If Yields Rise 100bps)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Low-risk bond portfolio</td>
<td>5.7%</td>
<td>6.5</td>
<td>1.1</td>
<td>12%</td>
<td>17%</td>
<td>-1.0%</td>
<td>5%</td>
</tr>
<tr>
<td>High-risk bond portfolio</td>
<td>7.5%</td>
<td>7.0</td>
<td>0.9</td>
<td>15%</td>
<td>22%</td>
<td>0.4%</td>
<td>8%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: Bank of America</figcaption></figure>
<h3 class="wp-block-heading">Which Sector ETFs Stand To Benefit?</h3>
Investors looking to position for lower yields should consider rate-sensitive exchange-traded funds. 
Hartnett's report highlights opportunities in:
<ul>
<li>SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>): Lower mortgage rates could revive housing demand.</li>
<li>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>): Defensive, dividend-paying stocks tend to outperform in a falling rate environment.</li>
<li>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>): Banks benefit from a steepening yield curve and deregulation.</li>
<li>SPDR S&amp;P Biotech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XBI#NYSE">XBI</a>): Growth stocks, including biotech, typically gain as borrowing costs decrease.</li>
</ul>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42990155/5-yields-fuel-demand-treasury-etfs-despite-bond-market-pain-relief-rally">5% Yields Fuel Demand For Long-Dated Treasury ETFs Despite Bond Market Pain: Is A Relief Rally On The Horizon?</a></li>
</ul>
Photo: Shutterstock

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Bonds

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Treasuries

Economics

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iShares Trust Barclays 20+ Year Treasury Bond Fund

'Buy Long Duration Bonds,' Says Bank Of America Strategist: 4 ETFs To Watch As Trump's Deficit Fight Unfolds

Fixed-rate mortgage rates have steadily declined, marking a third consecutive week of decrease. Freddie Mac's data shows that 30-year <a href="https://www.benzinga.com/money/mortgages">fixed-rate mortgage</a> now averages 6.60%, significantly lower than the 6.95% rate from a year ago.
"The combination of mortgage rate declines, firm consumer income growth, and a bullish stock market have increased homebuyer demand in recent weeks. While the outlook for the housing market is improving, the improvement is limited given that homebuyers continue to face stiff affordability headwinds," <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-continue-drop-3">noted</a> Sam Khater, Freddie Mac's chief economist.
Fixed-rate mortgages are crucial for many homebuyers, particularly first-time buyers because they offer predictability. Since the interest rate remains constant throughout the loan term, borrowers know their monthly payments regardless of market conditions, making for easier financial planning and buying peace of mind. If these rates continue to drop, this development could make homeownership more accessible, stimulating sales.
<a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales">Recent data</a> reveals that the U.S. housing market is showing signs of recovery. Existing home sales rose 3.5% in October 2024, rebounding from a 14-year low and surpassing market expectations.
However, the median home sales price increased by 4% to $407,200, outpacing November&#8217;s 2.7% inflation rate. While Khater warned about these dynamics, home prices typically rise faster than inflation, which is one reason they were excluded from the Consumer Price Index (CPI) calculation in 1983.
Falling mortgage rates support optimism for the market, which suffered high borrowing costs earlier this year. Furthermore, the National Association of Realtors Chief Economist Lawrence Yun noted increased inventory could further bolster home sales, with job growth and economic expansion supporting growing housing demand.
Still, the home construction market offered mixed results, as shown by broad market ETFs. The iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) returned 14.66% year-to-date, while the SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) fared better at 23.06%. The Invesco Building &amp; Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKB#NYSE">PKB</a>) outperformed with 31.86% — however, it is worth noting that it is by far the smallest and most expensive of the group.
Two notable stocks in the sector performed similarly. KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) has clocked a solid yet underperforming 18.52% return year-to-date. It trades at 8.9x its earnings, significantly lagging the peer average 21.1x.  Meanwhile, Toll Brothers Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) outperformed, climbing 37.39% year-to-date. Still, the firm trades cheaper than its peers at 8.8x its earnings. Following the <a href="https://www.benzinga.com/news/earnings/earnings-beats/24/12/42418066/toll-brothers-investors-may-be-disappointed-with-guidance-analysts-say-after-q4-earnings">latest earnings results</a>, Oppenheimer and JPMorgan reiterated an Outperform and Overweight rating, citing robust demand but warning about the gross-margin guidance for the first quarter of fiscal 2025.
Read Next: • <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42471357/egg-hyperinflation-could-spike-grocery-prices-why-cal-maine-vital-farms-are-soaring">Egg Hyperinflation Could Spike Grocery Prices: Why Cal-Maine, Vital Farms Are Soaring</a>
Photo: Shutterstock

PowerShares ETF Trust Dynamic Building &nstruction Portfolio

Mortgage Rates Drop Present Opportunities For Homebuilders

Owens Corning Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OC#NYSE">OC</a>) reported a&nbsp;23%&nbsp;year-over-year growth in&nbsp;third-quarter&nbsp;net sales to&nbsp;$3.046 billion,&nbsp;marginally beating the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b41768360/owens-corning-delivers-net-sales-of-3-0-billion-generates-net-earnings-of-321-million-and-adjusted" rel="noreferrer noopener">consensus of&nbsp;$3.043 billion</a>.
Sales by segments: Composites&nbsp;$534&nbsp;million&nbsp;(-6%), Insulation&nbsp;$946&nbsp;million&nbsp;(+4%), and Roofing&nbsp;$1.1 billion&nbsp;(relatively&nbsp;flat).
Doors reported revenue in its first full quarter, with&nbsp;net sales of&nbsp;$573 million. The company noted that market conditions remained challenging for this business, with decreased discretionary repair and remodel spending impacting demand and price.
Adjusted EPS was&nbsp;$4.38, up from&nbsp;$4.18 a year ago,&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">above the consensus of&nbsp;$4.05.</a>
Adjusted EBIT increased to $582 million from $518 million, with a 19% margin (vs. 21% prior-year quarter). Adjusted EBITDA rose 19% to $766 million, and the margin contracted to 25% from 26% a year ago quarter.
Operating cash flow totaled $699 million, up from $691 million, and free cash flow stood at $558 million (-4%). During the third quarter, the company returned $252 million through dividends and share repurchases.
Executive Vice President and Chief Financial Officer Todd Fister said, &#8221;We also executed a $200 million share repurchase program that delivered on our commitment to return significant cash to shareholders.&#8221;
Q4&nbsp;Outlook: Despite tougher market conditions, the company anticipates strong performance driven by portfolio and cost structure changes.
The company expects net sales growth of around 20%, with legacy business revenue slightly below fourth-quarter FY23, plus <a href="https://www.benzinga.com/calendars/guidance">added revenue from the Doors segment.</a>
The company forecasts a mid-teens EBIT margin and an EBITDA margin of about 20% for the fourth quarter of FY24.
Owens Corning expects near-term demand to be impacted by ongoing challenging conditions in most markets and normalizing seasonality.
2024&nbsp;Outlook: Owens Corning currently expects general corporate expenses of around $250 million (vs.&nbsp;$255 million-$265 million&nbsp;prior) and <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">capital additions of ~$650 million</a>.
Investors can gain exposure to the stock via SPDR Series Trust SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) and SmartETFs Sustainable Energy II ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOLR#NYSE">SOLR</a>).
Price Action: OC shares traded lower by 4.11% at $175.05 premarket at the last check Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41317881/hurricane-milton-to-deliver-2-5b-blow-to-floridas-homebuilding-sector-goldman-sachs" target="_blank" rel="noreferrer noopener">Hurricane Milton To Deliver $2.5B Blow To Florida&#8217;s Homebuilding Sector, Goldman Sachs Says</a></li>
</ul>

Earnings

Large Cap

SOLR

Owens Corning Delivers Q3 Earnings Beat, Forecasts Strong Q4 Despite Market Headwinds

Wall Street is on track for its third consecutive day of losses as investors grow cautious about risky assets, awaiting more clarity on U.S. fiscal and monetary policies and scrutinizing the latest <a href="https://www.benzinga.com/earnings">batch of corporate earnings.</a>
Both equities and commodities took a hit on Wednesday, while the U.S. dollar gained strength, attracting investor flows as traders moved to safer cash positions.
The U.S. dollar index, as tracked by the the&nbsp;Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), rose 0.5%, reaching levels last seen in late July. 
At midday in New York, the S&amp;P 500 was down 0.7%, attempting to hold support around the 5,800-point level. The Dow Jones also dropped 0.7%, and tech stocks, along with small caps, fared worse, sliding by 0.9%.
On the data front, mortgage applications declined for the fourth straight week, reflecting continued pressure <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41488744/mortgage-applications-fall-for-fourth-straight-week-as-high-rates-squeeze-homebuy">from elevated borrowing costs.</a>
Existing home sales fell by 1% in September to a seasonally adjusted annualized rate of 3.84 million, the lowest level since October 2010. This follows an upwardly revised 3.88 million in August and missed forecasts of 3.9 million.
Despite weak housing data, real estate stocks showed surprising resilience. The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and the SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) moved higher after two straight sessions of losses.
Gold prices, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), fell more than 1%, pulling mining stocks down with it. Silver plummeted over 3%, retreating from 12-year highs reached on Tuesday.
Oil prices slipped by 1%, while Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) tumbled 2%. 
<h1 class="wp-block-heading">Wednesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,815.02</td>
<td>-0.7%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,625.59</td>
<td>-0.7%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,213.10</td>
<td>-0.9%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,196.24</td>
<td>-0.9%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated 12:00 p.m. ET </figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent102224&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.6% to $579.72.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.7% lower to $426.41.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 1% to $491.16.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.7% $219.80.</li>
<li>The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) outperformed, up 0.6%. The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) lagged, down 1%.</li>
</ul>
<h1 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h1>
<ul>
<li>Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) fell 2.4% after reporting a worse-than-expected losses<a href="https://www.benzinga.com/news/earnings/24/10/41486950/boeing-q3-earnings-revenue-and-profit-decline-cultural-challenges-ceo-ortberg-vows-transformation"> last quarter</a>.</li>
</ul>
Other stocks reacting to earnings included:
<ul>
<li>Texas Instruments Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>), up 3.5%.</li>
<li>Baker Hughes Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>), up 3.9%.</li>
<li>Seagate Technology Holdings PLC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STX#NASDAQ">STX</a>), down over 7%.</li>
<li>Packaging Corporation of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKG#NYSE">PKG</a>), up over 6%.</li>
<li>Manhattan Associates Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MANH#NASDAQ">MANH</a>), down over 7%.</li>
<li>East West Bancorp. Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EWBC#NASDAQ">EWBC</a>), up over 7%.</li>
<li>Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>), down over 13%.</li>
<li>Coca-Cola Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), down 2.2%. </li>
<li>Thermo Fisher Scientific Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMO#NYSE">TMO</a>), down 2.9%.</li>
<li>NextEra Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), down 0.1%. </li>
<li>AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), up 3.8%. </li>
<li>Boston Scientific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSX#NYSE">BSX</a>), down 3.7%. </li>
<li>CME Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CME#NASDAQ">CME</a>), down 0.9%. </li>
<li>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), down 1.6%. </li>
<li>Hilton Worldwide Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLT#NYSE">HLT</a>), down 2.6%. </li>
<li>Vertiv Holdings LLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VRT#NYSE">VRT</a>), down 2.8%. </li>
<li>Old Dominion Freight Line Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>), down 4.8%. </li>
</ul>
Large-cap companies reporting earnings after the close include Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), T-Mobile US Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>), International Business Machines Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>), ServiceNow Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>), Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), United Rentals Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/URI#NYSE">URI</a>), Las Vegas Sands Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>), Raymond James Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RJF#NYSE">RJF</a>). 
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Wall Street Slumps For Third Straight Day As Investor Sentiment Fades, Dollar Strength Resumes, Boeing Disappoints: What's Driving Markets Wednesday?

Toll Brothers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) CEO Douglas Yearley is expecting the demand for luxury homes <a href="https://www.benzinga.com/news/24/08/40489889/whats-going-on-with-toll-brothers-stock-wednesday">to remain robust</a> into 2025 after his high-end construction company posted solid third-quarter results on Tuesday.
&#8220;With mortgage rates at their lowest point in a year and trending lower, favorable demographics and continuing balance in the supply and demand of homes for sale, we are optimistic that demand for new homes will remain solid through the end of fiscal &#8217;24 and into 2025,&#8221; he said on Wednesday during a conference call with analysts.
He noted that demand was &#8220;uneven&#8221; throughout the quarter as May had a strong start that slowed in June, while July saw the highest demand, particularly in the latter half of the month.
&#8220;We are encouraged by demand trends we are seeing across the country and also across our buyer segments,&#8221; he said.
Demand was especially strong in the states of California, New Jersey, Pennsylvania, South Carolina and in the urban areas of Atlanta, Boise, Las Vegas and Metro D.C., he said.
Toll Brothers posted adjusted EPS of $3.60 that exceeded Wall Street consensus of $3.31 and $2.73 billion in revenue that beat the analyst estimate of $2.71 billion.
Read Also: <a href="https://www.benzinga.com/trading-ideas/previews/24/08/40447261/toll-brothers-q3-earnings-preview-will-kamala-harris-3-million-homes-plan-boost-homebuilde">Toll Brothers Q3 Earnings Preview: Will Kamala Harris&#8217; 3 Million Homes Plan Boost Homebuilder Stocks?</a>
But RBC Capital Markets pointed out that Toll Brothers&#8217; 11% rise in home orders to 2,490 units from a year ago fell well short of its expectation for a 26% jump in orders and Wall Street&#8217;s forecast of a 27% increase in orders. Meanwhile, the company&#8217;s gross margin of 27.6% beat RBC&#8217;s forecast of 26.4% and Street consensus of 26.3%.
&#8220;Net, the miss on orders and beat on GM% were both wider than expected,&#8221; analyst Mike Dahl wrote in a note.
Wedbush Securities noted that Toll Brothers&#8217; orders rose by double-digit percentages in the Midatlantic, South and Mountain regions but fell by single-digit percentages in the North and Pacific regions.
It also pointed out that Toll Brothers&#8217; sales absorption rate, which is the ratio of homes sold to homes available in a market during a period, of 2.1 homes per month was below Wedbush&#8217;s forecast of 2.3 homes per month.
&#8220;We expect absorption to decline to 1.9 orders/month in F4Q24 due to normal seasonality,&#8221; analyst Jay McCanless wrote in a note.
Price Action: Toll Brothers gained 5.62%, to close at $141.03 on Wednesday, along with gains across ETFs in the sector.
<ul>
<li>Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEZ#NASDAQ">PEZ</a>) rose 2.33%.</li>
<li>IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) went up 2.6%.</li>
<li>IShares Focused Value Factor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FOVL#NYSE">FOVL</a>) gained 0.52%.</li>
<li>Themes US Small Cap Cash Flow Champions ETF (NASDFAQ: SMCF) edged up 0.64%.</li>
<li>SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) rose 2.9%.</li>
</ul>
Read Now: 
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<li><a href="https://www.benzinga.com/news/earnings/24/08/40464067/toll-brothers-likely-to-report-lower-q3-earnings-these-most-accurate-analysts-revise-forecasts-ahea">Toll Brothers Likely To Report Lower Q3 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call</a></li>
</ul>
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Demand For High-End Homes 'Will Remain Solid' Into Next Year, Says Toll Brothers CEO

Vice President Kamala Harris laid out a plan to lower costs for middle-class Americans with a focus on food costs, home ownership costs and health care costs during a speech in swing state <a href="https://www.benzinga.com/news/24/08/40411555/ahead-of-kamala-harris-first-economic-policy-speech-in-north-carolina-campaign-provides-sneak-peek-f">North Carolina Friday.</a>
Improve the Economy: Harris laid out a plan to improve the economy and life for the middle class, which remains a top priority for voters in<a href="https://www.benzinga.com/general/politics/24/08/40407829/harris-vs-trump-vice-president-leads-2024-election-by-4-points-shows-strong-support-from-voters-"> 2024 election polls.</a>
"Our country has come a long way," Harris said.
Harris stated that when she and President Joe Biden took office, millions of people were out of work, and they helped orchestrate one of the largest economic comebacks.
"Our economy is the strongest in the world."
As president, Harris said she will be "laser focused" on building what she called an "opportunity economy."
The opportunity economy will be one where everyone has a fair chance to compete, succeed, and build wealth for themselves and their children.
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</ul>
Lowering Costs: Harris said a main priority as president of the United States will be lowering costs and building on the foundation of progress already in place.
"Costs are still too high," Harris said.
Harris said a family's salary should be enough to provide a good quality of life.
Her speech focused on the middle-class American, which she called an "essential" part of the country.
The vice president said no child should grow up in poverty, and workers should be able to retire with dignity after years of hard work.
"I grew up in a middle-class household."
Harris recalled her time working at McDonald's during college, earning spending money while some of her coworkers were supporting their families, often working their second or third job.
"As president, I will take on the high costs that matter most."
Harris said food companies are seeing their highest profits in two decades, and some companies are not playing by the rules.
"We need to take action when that is the case."
Harris said she will go "after the bad actors" and work on price-gauging acts.
"We will help the food industry become more competitive."
Trump's tax plan is a national sales tax, Harris told the crowd.
"That will devastate Americans."
Harris said Donald Trump will tax everyday products and necessities that are imported, raising costs for gas, food, clothing, and over-the-counter medication.
The vice president said economists estimate the typical family would pay $3,900 more a year under the Trump tax plan.
Harris said she will continue progress on lowering medical costs, which includes capping the cost of insulin and lowering prescription drug costs for seniors.
Food companies could be on watch with Harris' latest comments, with a focus on passing cost savings on to consumers and not having high profit margins. The Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) tracks many of the top food stocks.
Home Ownership: Another strategic priority from Harris centered on homeownership, with a goal of building three million new homes for sale or rent for the middle class during her "first term" as president.
Harris recalled her family renting homes for most of her life before her mother was able to buy a home. The vice president called homeownership a symbol of pride that comes with hard work and provides financial security.
Homeownership is "out of reach" for many American families, Harris said. A housing shortage is one of the key reasons, the vice president added.
Harris shared that she will work to make a $25,000 credit for first time homebuyers on the purchase of a new home.
"We can do this."
Harris said Trump's plan will add around $1,200 a year to the typical American mortgage.
"He's got it backward."
Homebuilder companies like Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) and D.R. Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) could become popular with investors under a Harris presidency and the call for millions of new homes. The SPDR Series Trust Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) offers exposure to homebuilder stocks.
Tax Cuts: Harris said she will restore two tax cuts that help 100 million or more middle class Americans.
The vice president said the earned income tax credit and child tax credit will allow millions of Americans to keep more income.
"We know this works," Harris said.
Part of the plan calls for $6,000 in tax relief for parents during the first year of a child's life.
Harris said Trump's plan for tax cuts involves handing cuts to billionaires and corporations.
"Look who they fight for. Donald Trump fights for billionaires."
Harris added that Trump's plans will "devastate the middle class."
SPY Price Action: The SPDR S&amp;P 500 ETF Trust is up 0.2% to $554.30 on Friday.
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Harris Warns Trump Tax Plan Will 'Devastate Americans,' Vows To Go After 'Bad Actors' Behind Food Prices

Vice President Kamala Harris&#8217; campaign disclosed <a href="https://www.benzinga.com/news/24/08/40411555/ahead-of-kamala-harris-first-economic-policy-speech-in-north-carolina-campaign-provides-sneak-peek-f">policy proposals regarding the residential housing market </a>ahead of the Democratic Party candidate&#8217;s unveiling of her economic policy at an event in the key swing state of North Carolina. 
Harris will launch a four-year plan to bring down housing costs for working families and also alleviate housing shortages. Among the policy proposals are:
<ul>
<li>Construction of three million new housing units to plug in the shortage in housing supply in the first four years.</li>
<li>Expanding the existing tax incentives for builders to build affordable rental housing.</li>
<li>Offering first-ever tax incentives for building starter homes.</li>
<li>Setting up a new federal fund to spur innovative housing construction.</li>
<li>A $25,000 down-payment support for first-time homeowners.</li>
</ul>
The Harris campaign also looks to clamp down on corporate and major landlords by stopping rent-setting data firms from price fixing to raise rents by double digits and forbidding Wall Street investors from buying up and marking up homes in bulk.
Here&#8217;s how the homebuilder stocks are trading in premarket trading, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data</a>:
<ul>
<li>KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) climbed 3.2% to $82.65.</li>
<li>Toll Brothers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) gained 2.1% to $131.64.</li>
<li>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) added 0.30% to $175.81.</li>
<li>PulteGroup, Inc. (PHM) rose 0.39% to $123.</li>
</ul>
See Also:&nbsp;<a href="https://www.benzinga.com/money/best-home-builder-stocks" target="_blank" rel="noreferrer noopener">Best Home Builder Stocks</a>
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Homebuilding Stocks On Investors' Radar After Kamala Harris Reveals Plan To Boost Housing Market

Taking on price gouging and thrusting on sagging residential construction will likely be part of the agenda of a potential Democratic administration under Kamala Harris, according to a statement released by the Harris-[Tim] Walz campaign team. The statement is a prelude to Harris&#8217; first major economic speech scheduled to be made at a campaign rally in Raleigh, North Carolina on Friday.
Accent On Housing: Harris will launch a four-year plan to bring down housing costs for working families and also alleviate housing shortages, excerpts of the statement shared on X <a href="https://x.com/search?q=HARRIS+CAMPAIGN&amp;src=typed_query&amp;f=top">showed. </a>The team said it looks forward to constructing three million new housing units to plug in the shortage in housing supply in the first four years, with involvement from both workers and the private sector. 
The Democrats under Harris will likely seek to expand the existing tax incentives for builders to build affordable rental housing, offer first-ever tax incentives for building starter homes and set up a new federal fund to spur innovative housing construction.
The team also plans to clamp down on corporate and major landlords by stopping rent-setting data firms from price fixing to raise rents by double digits and forbidding Wall Street investors from buying up and marking up homes in bulk.
Harris also proposed a $25,000 down-payment support for first-time homeowners, which will likely benefit four million first-time buyers over four years.
Harris&#8217; focus on housing as a key agenda comes at a time when homebuyers are disadvantaged by rising home rentals and higher home ownership costs, which is seen as a function of higher interest rates and the imbalance in housing supply and demand.
See Also: <a href="https://www.benzinga.com/money/best-home-builder-stocks">Best Home Builder Stocks</a>
Food Prices: Harris also suggested if elected, she would announce the &#8220;first-ever federal ban&#8221; on food price hikes, vesting federal authorities with sweeping powers to clamp down, the Washington Post <a href="https://www.washingtonpost.com/business/2024/08/15/kamala-harris-economic-policy-2024/">reported</a>, citing the statement released by the campaign.
This will set &#8220;clear rules of the road to make clear that big corporations can't unfairly exploit consumers to run up excessive corporate profits on food and groceries,&#8221; the statement reportedly said.
The Post reported that the vice president&#8217;s plan marks a further escalation in the economic populism of President Joe Biden.
Will Harris Go Further Left? The Biden administration went far left in terms of its policies, ranging from antitrust, trade, labor rights, industrial policy and also bypassed party consensus, with the government intervening in nearly every facet of the nation's economy, the Post said.
The vice president will largely tow in line with Biden&#8217;s policies, the report said, adding that apart from advancing her pet themes of care agenda, she would also be pro-union. 
One aspect in which she will diverge from Biden is how she approaches businesses, the report said, citing her meeting with JPMorgan&#8217;s Jamie Dimon in March. Zach Butterworth, who led private sector engagement for the White House and is currently a Lafayette Advisor, reportedly said, &#8220;Her team is smart to acknowledge there's a buildup of pressure in parts of the business community and it's worth talking to them. She knows they're an important voice.&#8221;
There are conflicting views regarding Harris&#8217; stance on anti-trust policy. While left-wingers within the party have called upon her to stand behind Federal Trade Commission&#8217;s Lina Khan, the vice president&#8217;s ties with tech executives could sway her toward a more lenient approach, it added. As recently as this week, rumors abound about search giant Alphabet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) being on the brink of being broken up amid FTC&#8217;s crusade against it due to its search dominance.
Harris&#8217; stances on cryptocurrencies will also be in the spotlight, given the current misgivings of the industry toward SEC Chair Gary Gensler&#8217;s tough position. 
The vice president has already made it clear she is for the elimination of taxes on tips &#8211; a <a href="https://www.benzinga.com/news/24/06/39244008/trump-pitches-plan-to-scrap-tax-on-tips-in-nevada-rally-culinary-union-responds-wild-campaign-promis">stance Trump also shares. </a>
Harris&#8217; campaign did a flip-flop on fracking, suggesting that the vice president is not against a total ban on it. Her team has also hinted at going back on banning cash bail, which facilitates the release of criminals by setting very low bail amounts, as well as healthcare, immigration and gun control, ABC News<a href="https://abcnews.go.com/US/wireStory/marijuana-death-penalty-fracking-common-harris-shifted-positions-112884794"> said.</a>
The SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) climbed 1.79% to $110.97 on Thursday, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a> The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which ended Thursday&#8217;s session up 1.71% at $553.07, rose 0.17% in premarket trading on Friday.
Read Next: 
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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40410895/anthony-scaramucci-says-kamala-harris-poll-numbers-are-driving-market-higher-predicts-ro">Anthony Scaramucci Says Kamala Harris&#8217; Poll Numbers Are Driving Market Higher, Predicts &#8216;Rough 81 Days&#8217; Ahead For Trump</a></li>
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Ahead Of Kamala Harris' First Economic Policy Speech In North Carolina, Campaign Provides Sneak-Peek: Focus On Perking Up Residential Construction And Food, Grocery Price Hike Ban

Mortgage rates fell to their lowest levels in over a year this week, spurred by rising market expectations of interest rate cuts by the Federal Reserve, bringing some much-needed <a href="https://www.benzinga.com/topic/real-estate-investing">relief to U.S. homebuyers.</a>
As of Aug. 7, the average 30-year fixed mortgage rate dropped by 26 basis points from the previous week, settling at 6.47%. This is the lowest rate since late May 2023, according to Freddie Mac data released on Thursday.
Similarly, the average 15-year fixed mortgage rate fell by 36 basis points from the previous week to 5.63%, the lowest level since April 2023.
&#8220;The decline in mortgage rates does increase prospective homebuyers' purchasing power and should begin to pique their interest in making a move,&#8221; Freddie Mac highlighted.
Additionally, this decrease in rates is already benefiting existing homeowners. The refinancing share of mortgage applications has climbed to nearly 42%, the highest since March 2022.
Read Also: <a href="https://www.benzinga.com/money/how-to-invest-in-real-estate">How To Invest in Real Estate In 2024</a>
<h3 class="wp-block-heading">Goldman Sachs Sees Home Prices Rising: Fed Rate Cuts Likely to Fuel Appreciation</h3>
&#8220;Bad news is (likely) good news for home price appreciation,&#8221; wrote Goldman Sachs analyst Vinay Viswanathan in a note Thursday, highlighting the investment bank&#8217;s optimistic outlook for the housing market.
Goldman Sachs has upwardly revised its forecasts for home price appreciation (HPA) in 2024 and 2025. The bank now expects full-year 2024 HPA to reach 4.5% and 2025 HPA to come in at 4.4%. These projections are notably higher than their previous forecasts of 4.2% and 3.2%, respectively.
The bullish outlook is underpinned by Goldman Sachs economists&#8217; prediction that the Federal Reserve will implement three rate cuts this year, each by 25 basis points. 
These anticipated cuts are expected to bring the 30-year conforming mortgage rate down to 6.5% by the end of 2024 and 6.1% by the end of 2025. These figures are slightly lower than the bank&#8217;s previous forecasts of 6.6% and 6.3%, respectively.
<h3 class="wp-block-heading">Mortgage-Linked Stocks Rally</h3>
The positive sentiment surrounding the recovery of the property market extended to mortgage-linked stocks. 
The iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>), which tracks stocks exposed to the residential property market, rose 0.6% on Thursday. 
Other sector funds, such as the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) and the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>), saw gains of 0.9% and 0.8%, respectively.
Individual stocks in the mortgage business showed robust performance, with Rocket Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) and UWM Holdings Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) up by 3.3% and 4.5%, respectively.
Shares of companies involved in home construction also experienced a boost. The SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) climbed 1.6%.
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</ul>
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Mortgage Rates Fall To Lowest Level In Over A Year, Ease Pressure On Homebuyers: 'Good News For Home Price Appreciation'

After a turbulent week in the markets, the bulls reclaimed dominance on Wall Street during Friday&#8217;s session, with indices and sectors trading in positive territory as investors welcomed the latest corporate earnings results and further confirmation of inflation progressing toward <a href="https://www.benzinga.com/topic/interest-rates">the Fed&#8217;s 2% target.</a>
In June, the Personal Consumption Expenditure price index – the Fed&#8217;s preferred measure of inflation – dropped to 2.5% year-on-year, as anticipated, marking the lowest level since February 2021. The core component slightly exceeded expectations, remaining <a href="https://www.benzinga.com/top-stories/24/07/39987142/feds-favorite-inflation-gauge-keeps-falling-but-fed-wants-durable-downward-trend-economist-says">steady at 2.6% annually.</a>
Investors are unwavering in their expectations for a Fed interest rate cut in September, assigning it a 100% probability and factoring in nearly three cumulative rate cuts by year-end.
The Dow Jones Industrial Average led the charge on Friday, with the blue-chip index surging 1.9%, setting the stage for its strongest session this year. The tech-heavy Nasdaq 100 rebounded significantly, climbing 1.6%, which halted the tech sector&#8217;s decline but wasn&#8217;t enough to reverse a negative weekly close. 
The Russell 2000, as tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), also posted a solid gain of 1.3%.
Rate-sensitive sectors continued their rally, with homebuilders, as tracked by the SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>), rising over 3% for the day, reaching all-time highs and marking their third <a href="https://www.benzinga.com/markets/equities/24/07/39988310/homebuilder-stocks-rally-to-record-highs-on-rate-cut-frenzy-but-housing-sales-still-struggle">consecutive positive weekly close.</a>
In the bond market, Treasuries rose as yields dipped slightly, especially in longer-dated maturities.
Gold also rallied, increasing by 1%, while oil prices dropped by 1%. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 2.5%, marking its second consecutive positive session after three negative ones.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,712.07</td>
<td>1.9%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,483.84</td>
<td>1.6%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,116.90</td>
<td>1.5%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,252.38</td>
<td>1.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:00 p.m. ET</figcaption></figure>
According to <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent072524&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.5% higher to $546.75.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 2% to $407.34.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA:&nbsp;<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) rose 1.5% to $465.21.</li>
<li>Sector-wise, the Industrials Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)&nbsp;outperformed, up by 2.3%, while the&nbsp;Energy Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, up 0.5%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
Stocks moving on earnings were:
<ul>
<li>3M Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>), up 19%. </li>
<li>Aon plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AON#NYSE">AON</a>) up 6.4%. </li>
<li>Avantor Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVTR#NYSE">AVTR</a>) up 12%.</li>
<li>Barnes Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/B#NYSE">B</a>), down 3%.</li>
<li>BJ&#8217;s Restaurants, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BJRI#NASDAQ">BJRI</a>), down 12%.</li>
<li>Booz Allen Hamilton Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) down 10%. </li>
<li>Boyd Gaming Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BYD#NYSE">BYD</a>), up 5.4%.</li>
<li>Bristol-Myers Squibb Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>), up 9.7%. </li>
<li>Centene Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) up 9.8%. </li>
<li>Charter Communications, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) up 16.2%.</li>
<li>Colgate-Palmolive Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CL#NYSE">CL</a>) up 3.7%. </li>
<li>Deckers Outdoor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DECK#NYSE">DECK</a>) up 7.9%.</li>
<li>DexCom, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DXCM#NASDAQ">DXCM</a>) down 42%. </li>
<li>Franklin Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEN#NYSE">BEN</a>) up 1.9%.</li>
<li> Juniper Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNPR#NYSE">JNPR</a>) flat. </li>
<li>Mohawk Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MHK#NYSE">MHK</a>) up 19%. </li>
<li>Newell Brands Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWL#NASDAQ">NWL</a>) up 39%. </li>
<li>Saia Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAIA#NASDAQ">SAIA</a>) down 20%. </li>
<li>SkyWest, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SKYW#NASDAQ">SKYW</a>) down 6.5%. </li>
<li>T. Rowe Price Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TROW#NASDAQ">TROW</a>) down 2.8%. </li>
<li>VeriSign, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRSN#NASDAQ">VRSN</a>) up 3.3%. </li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/07/39970069/investors-go-all-in-on-small-caps-pour-over-6-billion-into-russell-2000-etf-this-month-they-will">Investors Go All In On Small Caps, Pour Over $6 Billion Into Russell 2000 ETF This Month: They &#8216;Will Return To Larger-Cap Alternatives,&#8217; Veteran Analyst Says</a></li>
</ul>
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Wall Street Enjoys Late-Week Rally On Benign Inflation Data, Dow Jones Eyes Best Session Of 2024, Tech Unwinding Stalls: What's Driving Markets Friday?

Mortgage rates are on a steady decline as investors have cemented expectations for upcoming reductions in the federal funds rate, yet mortgage demand continues to <a href="https://www.benzinga.com/topic/real-estate-investing">depict challenges among homebuyers. </a>
The Mortgage Bankers Association has reported Wednesday that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) dropped by 5 basis points to 6.62% for the week ending July 19, 2024. 
This marks the lowest borrowing cost for home purchases since early February 2024.
Despite the decline in mortgage rates, long-term Treasury yields remained stable last week. The 30-year Treasury yield has held steady between 4.20% and 4.25% over the past week.
Market expectations for a 25 basis point rate cut in September hover at 100%, remaining unchanged from the previous week, according to the CME FedWatch Tool. 
<h3 class="wp-block-heading">Bumpy demand for mortgages</h3>
Despite the decline in mortgage rates, mortgage demand has shown some setbacks. While the <a href="https://www.benzinga.com/real-estate/reit/24/07/39816656/fed-rate-cut-expectations-drop-mortgage-rates-to-4-month-lows-surge-in-new-applications-refinanc">previous week&#8217;s drop in mortgage rates </a>spurred a sharp rise in new mortgage and refinancing applications, these trends were more subdued last week.
Mortgage applications fell by 2.2% week-over-week, while the refinance index edged up by 0.3% to 614.9, hitting the highest level since mid-August 2022.
On Tuesday, the National Association of Realtors reported a significant 5.4% decline in existing home sales for June. This drop is likely due to rising buyer apprehensions as median home prices reach new all-time highs. 
Jeffrey Roach, chief economist for LPL Financial, commented on the situation, stating, &#8220;The low supply of homes and high interest rates have depressed affordability to near-term lows. Because of the tight supply of homes available for sale, median prices continue to rise. We should not expect this dynamic to improve until mortgage rates drop and supply increases.&#8221;
<h3 class="wp-block-heading">Market Reactions</h3>
The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) was flat during the premarket trading session on Wednesday, following a 1% rise on Tuesday.
The SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) fell 0.5% at the time of this writing, while the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) rose 0.5%. 
The worst performers in the premarket among real estate stocks were: 
<ul>
<li>Gladstone Land Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAND#NASDAQ">LAND</a>) down 3.96%.</li>
<li>Compass, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COMP#NYSE">COMP</a>) down 3.96%.</li>
<li>Service Properties Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SVC#NASDAQ">SVC</a>) down 3.47%.</li>
<li>Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>) down 2.71%.</li>
<li>Office Properties Income Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPI#NASDAQ">OPI</a>) down 1.48%. </li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/24/07/39920377/us-home-sales-see-sharpest-monthly-decline-in-1-5-years-as-record-high-prices-keep-buyers-on-the-sid">US Home Sales See Sharpest Monthly Decline In 1.5 Years As Record High Prices Keep Buyers On The Sideline</a></li>
</ul>
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