iShares US Home Construct... (ITB)

Weak August jobs data strengthens market expectations for Fed rate cuts, which means mortgage rates reduce. Homebuilder ETFs could benefit from cheaper borrowing costs, potentially outperforming the b...

The average rate on the 30-year fixed mortgage dropped 16 basis points to 6.29% Friday. This is a major change from May, when the rate on the 30-year fixed peaked at 7.08%.

While the housing segment has struggled, some small green shoots are emerging. Mortgage rates remain elevated near the mid- to high-6% range, keeping many buyers on the sidelines.

Home prices in the 20 biggest metros in the U.S. continues to slow sharply, as the housing market weakens under the weight of high mortgage rates and unaffordability.

New home sales inched down in July but still came in higher than expected. According to the Census Bureau, new home sales were at a seasonally adjusted annual rate of 652,000 last month.

Home builders' confidence in the housing market fell in August, the National Association of Home Builders said.

During a season when investor activity is typically in its summer doldrums, these two industry exchange-traded funds (ETFs) were hotter than July — the iShares U.S. Home Construction ETF (ITB) and the...

ITB offers exposure to U.S. homebuilders, mostly mid-caps, with a value tilt but significant volatility, and is probably best suited for long-term, risk-tolerant investors. The ETF trades at a steep d...