Wall Street Bullish on Homebuilders Despite Slowdown in Sector
- Investors remain optimistic even as economic data cool in July
- Toll Brothers’ earnings next week to provide insight on demand
This article is for subscribers only.
The pullback in the once red-hot housing market isn’t scaring investors away from homebuilding stocks -- it’s all normal, they say. And normal is good enough for now.
Construction starts, mortgage applications and existing home sale data this week all pointed to signs of cooling amid the rise in mortgage rates from record low levels. Still, since the start of the third quarter, the S&P Supercomposite Homebuilders Index has risen nearly 17%, outperforming the S&P 500’s 13% rally in the same period.