Wednesday, April 29, 2009

Homebuilders Index Up By 67.4% Since Mid-March

After several years of punishment, the U.S. homebuilding industry has begun to show some glimmers of hope. Earlier this month, The National Association of Home Builders reported its confidence index to be at its highest level since October. This optimism has pushed shares of the SPDR S&P Homebuilders ETF (NYSE: XHB) 18.3% higher during the past 4 weeks. Record-low interest rates and an $8,000 tax credit for new home buyers have been key factors to the XHB rebound.

MP: Since the early March low, the SPDR S&P Homebuilders Index is up by 67.4%, and over the last three months it's up by 30% vs. 0% for the Dow Jones average (see chart above, click to enlarge).

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