Homebuilder ETFs Surge on Strong July New Home Sales Data

Today’s July new home sales numbers came in much better than analysts had expected, and the two largest homebuilder ETFs are flying higher as a result.

According to The Commerce Department, July New Home Sales surged 12.4% from the prior month to seasonally-adjusted annual rate of 654,000 units. This marks the highest pace since October 2007. Analysts had expected a much slower 580,000 unit annualized pace.

Sales rose 31.3% from the year-ago period, further bolstering the narrative of a now several year-long housing recovery.

In the same report, June’s sales pace was revised down to 582,000 units from a prior report of 592,000 units.

The SPDR S&P Homebuilders ETF (NYSE:XHB) and iShares Dow Jones US Home Construction ETF (NYSE:ITB) both rose more than 1.5% in Tuesday morning trading following the report.

XHB has now gained about 6.4% year-to-date:

XHB-2016-08-23

While ITB has edged XHB out on performance, rising 7.7% since the start of the year:

ITB-2016-08-23

ITB also holds the edge in assets under management, with about $1.437 billion versus the XHB’s $1.183 billion.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico