Housing Sector: Reaction to the Regional Bank Spiral
Excerpt from Footnotes and Flashbacks: Week Ending March 12, 2023
Below we update the stock return charts for the homebuilders and in the second chart for the housing related services sectors.
The swings in interest rates are going to give housing exposed investors the bends. We saw the 30Y mortgage get down close to 6% and then bounce back up above 7%. Friday saw the move lower by almost 25 bps depending on what source you look at. The mortgage rates key off the 10Y UST and today and the 10Y UST is down by another 18 bps as we go to print (was down by more earlier in the day) and stands at 3.5% after flirting with 4% before SVB. Builders are actually rallying today. In services, Anywhere (HOUS) up by almost 8% by midday (see Credit Profile: Anywhere Real Estate 3-1-23).
