OPAD - Homebuilder stocks extend gains as mortgage applications rise
2023-06-28 12:03:20 ET
Homebuilder stocks rallied again in Wednesday late morning trading after mortgage applications for home purchases drifted up for a third straight week even as borrowing costs remained high.
Overall, the S&P 1500 Composite Homebuilding Index (SP1500-25201030) edged up 0.2% , though the SPDR S&P Homebuilders ETF ( NYSEARCA: XHB ) slipped 0.3% .
Looking at individual names in the residential construction space, Beazer Homes USA ( NYSE: BZH ) jumped 10.9% on the heels of an analyst upgrade, Hovnanian Enterprises ( NYSE: HOV ) climbed 4.2% , Taylor Morrison Home ( NYSE: TMHC ) +1.2% , Toll Brothers ( NYSE: TOL ) +0.9% , Tri Pointe Homes ( NYSE: TPH ) +0.3% and Lennar ( NYSE: LEN ) +0.1% .
Digital real estate stocks, meantime, notched even bigger gains, with Redfin ( NASDAQ: RDFN ) up 11.5% , Zillow Group ( NASDAQ: Z ) ( NASDAQ: ZG ) +2.3% , Opendoor Technologies ( NASDAQ: OPEN ) +9.9% and Offerpad Solutions ( NYSE: OPAD ) +20.5% .
The bullish momentum continued after Tuesday's batch of economic reports showed a stronger-than-expected increase in home prices in April and a continuing decline in housing inventory, driving up homebuilder stocks.
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Homebuilder stocks extend gains as mortgage applications rise