iShares US Home Construction ETF

ITB

Market cap $2.67B

There were an estimated 36.8% more home sellers than buyers in October. Real estate firms cite housing affordability as the biggest challenge to their business.

Home builders are escalating discounts and cutting prices on newly built homes, but it hasn't been enough, as demand among buyers remains weak.

CNBC's Rick Santelli joins 'Squawk on the Street' with the latest economic data to cross the tape.

CNBC's Diana Olick reports on the latest housing data.

The number of homes going under contract in the U.S. was unchanged in September, according to the National Association of Realtors.

Fed rate cuts in October may fuel gains in SHV, VYM, ITB, SPYG & CARZ as lower borrowing costs should favor income plays, housing, growth & autos.

Existing-home sales rose 1.5% over the previous month to the highest rate since February.

The average rate on the 30-year fixed started July at 6.67% and is now at 6.17% Inventory rose 14% from September 2024.

The iShares U.S. Home Construction ETF offers targeted exposure to the U.S. home construction sector, with a 0.38% expense ratio. ITB currently trades at an attractive valuation, with a weighted average trailing P/E of 12.3x, versus the S&P 500's 25.1x. ITB stands to benefit from potential interest rate declines and ongoing strength in the U.S. housing market.

iShares U.S. Home Construction ETF is rebounding as housing market conditions improve, with declining mortgage rates and rising home sales. ITB's portfolio holdings, including DHI, LEN, PHM, TOL, and BLD, are expected to return to positive financial growth in 2026 and beyond. Despite a current strong sell quant rating due to past momentum and volatility, improving fundamentals and market trends support a bullish outlook for ITB.