XHB - Strong Homebuilder Performance In November Hints At 2024 Tailwind For 'Plow-Horse Economy' | Benzinga
Construction could be a major tailwind to economic growth in 2024 if homebuilding keeps pace with the rate at which it grew in November and demand for new homes remains robust.
Housing starts surged by 14.8% to 1,560,000 in November, well above consensus expectations of 1,360,000, with an 18% surge in starts of single-family homes driving the numbers. Building permits fell 2.5% to 1,460,000, slightly lower than the expected 1,465,000.
Builders have seen strong demand for new homes in 2023 despite high interest rates. This has come as something of a surprise to markets, which sold off homebuilders when the Fed funds rate peaked at 5.25%-5.5% in July on expectations that rising mortgage rates would stifle demand.
Also Read: Homebuilder Stocks In 2024: Can The Sector Enjoy ...