ITB Stock Recent News

According to a National Association of Homebuilders report, homebuilder confidence continues to rise, signaling a potential recovery in the housing market. Rafe Jadrosich, Senior Homebuilders Analyst at Bank of America Securities, joins Yahoo Finance Live to discuss the factors driving this optimism.

Economic indicators provide insight into the overall health and performance of an economy. They are essential tools for policymakers, advisors, investors, and businesses.

The iShares U.S. Home Construction ETF is a concentrated ETF that invests in companies involved in the homebuilding industry. ITB continues to sell at a discount to the S&P 500, but I'm hesitant to allocate a chunk of my portfolio to a cyclical industry that has run this far. While the long-term outlook for the housing industry is positive, I believe there are other market areas that offer better potential for future performance.

Per experts, about 40% of home sales take place between April and July in the United States.

With increasing expectations of a further fall in interest rates, 2024 appears poised to provide relief to the housing market. Moderating inflation levels and expectations of the housing market bouncing back in 2024 paint a better picture for the market.

iShares U.S. Home Construction ETF is a buy due to factors such as the expected reduction in interest rates and robust new construction demand. ITB has outperformed its peers and the S&P 500 Index with a 10-year compound annual growth rate of 15.72%. ITB's strong holdings, including D.R. Horton and Lennar Corporation, set it apart from its competitors and position the fund for continued growth.

The January release for new home sales from the Census Bureau came in at a seasonally adjusted annual rate of 661,000 units, falling short of the 680,000 forecast. New home sales were up 1.5% month-over-month from a revised rate of 651,000 in December and up 1.9% from one year ago.

The recent developments in the housing market, underscored by the NAHB/Wells Fargo HMI's rise, reflect a growing confidence among homebuilders.

The U.S. housing market may see a resurgence in the spring of 2024, driven by moderating mortgage rates and inflation, though challenges in affordability and supply persist.

Hello! This is MarketWatch reporter Isabel Wang bringing you this week's ETF Wrap. In this week's edition, we look at some of the ETF sectors that were in spotlight during former President Donald Trump's presidency to see what a second term could mean for these funds.