Is Now the Time to Buy Homebuilding Stocks?
Chaos has subsumed the housing market in 2022. Mortgage rates have shot up at a record pace, recently hitting an average of 7% across the United States. These rate increases have made it increasingly difficult for people to afford a home, which has gotten investors nervous about the prospects of the housing industry over the next few years. The iShares U.S. Home Construction Exchange Traded Fund (NYSEMKT: ITB) is down 38% this year, almost double the 22.8% drop in the S&P 500 over the same time period.
With the homebuilding sector trailing the market in 2022, is now the time to buy the dip on some homebuilding stocks? Let's investigate.
Source Fool.com
