Homebuilders to Catch Lowe’s, Home Depot as QE Upheld: EcoPulse

Shares of U.S. homebuilding companies have fallen more than 20 percent since May, even as home-improvement retailers rose to a record high, a sign some investors are too pessimistic that higher mortgage rates could derail new construction.

The Standard & Poor’s Supercomposite Homebuilding Index -- which includes PulteGroup Inc., Lennar Corp. and nine other companies -- has declined 21 percent since reaching the highest level in almost six years on May 14. Meanwhile, the S&P 500 Home Improvement Retail Index -- comprising Home Depot Inc. and Lowe’s Cos. -- has risen 5.2 percent.