New US Single-Family Home Sales Fall From Prior Month — But Are Up From A Year Ago As Mortgage Rates Decline
Portfolio Pulse from Michael Juliano
US single-family home sales fell 4.7% in August from July but rose 9.8% year-over-year. Mortgage rates declined, with the 30-year rate at a two-year low. Lennar Corporation, iShares U.S. Home Construction ETF, and Direxion Daily Homebuilders & Supplies Bull 3X Shares saw stock declines, while AdvisorShares Gerber Kawasaki ETF saw a slight increase.
September 25, 2024 | 10:40 pm
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NEUTRAL IMPACT
AdvisorShares Gerber Kawasaki ETF saw a slight increase of 0.17%, possibly due to its diversified holdings mitigating the impact of declining home sales.
GK's slight increase suggests that its diversified portfolio may have cushioned the impact of the housing market decline.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
iShares U.S. Home Construction ETF fell 1.71% as the housing market showed a decline in sales, affecting home construction stocks.
The ETF's decline reflects the broader market reaction to the drop in home sales, impacting home construction-related stocks.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Lennar Corporation's stock fell 1.29% as single-family home sales declined month-over-month, despite a year-over-year increase and lower mortgage rates.
Lennar's stock decline is linked to the drop in single-family home sales from July to August, which impacts homebuilders. Despite lower mortgage rates, the immediate sales decline likely influenced investor sentiment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Direxion Daily Homebuilders & Supplies Bull 3X Shares fell 4.94% due to the decline in home sales, impacting leveraged homebuilder stocks.
NAIL's significant drop is due to its leveraged exposure to homebuilder stocks, which were negatively impacted by the decline in home sales.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 75