U.S. Home Construction ETF Struggles Amid Market Pressures
The iShares U.S. Home Construction ETF (ITB), which includes major builders like D.R. Horton and Lennar Corporation, has declined 3.96% year-to-date and 5.34% over the last three months. The sector faces headwinds from historically high mortgage rates, dampening affordability and consumer confidence.
Builders are grappling with higher inventories as unsold new homes pile up and existing homeowners stay put. Nearly 40% of builders are now offering incentives to spur sales, squeezing margins further. Raw material costs, exacerbated by tariffs on imports like lumber, add to the pressure.
While tech and finance ETFs thrive, the housing sector languishes—a stark contrast to the resilience of cryptocurrencies, which continue to attract institutional interest despite broader market volatility.
