I have been surprised about the strength of this sector so far this year. I figured that as lumber prices continue to rip higher and prices of other building materials such as concrete increase, margins at home builders will be pressured. At the same time higher interest rates should increase the price of getting a mortgage which should dampen demand for houses. All this and the fact that labor costs are increasing makes me feel skeptical about investing in home builders at the moment. #housing$NAIL $IBT
Solid Data Drives Housing Stocks and ETFs Higher
I have been surprised about the strength of this sector so far this year. I figured that as lumber prices continue to rip higher and prices of other building materials such as concrete increase, margins at home builders will be pressured. At the same time higher interest rates should increase the price of getting a mortgage which should dampen demand for houses. All this and the fact that labor costs are increasing makes me feel skeptical about investing in home builders at the moment. #housing $NAIL $IBT