State Street SPDR S&P Homebuilders ETF

XHB

Market cap $1.51B

The NAHB/Wells Fargo Housing Market Index fell to 34 in April due to rising materials prices, elevated interest rates and increased economic uncertainty.

Sales of existing homes declined to a nine-month low, amid rising mortgage rates and economic uncertainty.

Rising prices for fuel and materials such as aluminum push up costs just as they were stabilizing. ‘This war just trashed that.

Spring selling season brings hope for homebuilding ETFs like ITB, but higher mortgage rates and weak demand keep the outlook mixed in 2026.

A stunning one-day surge of 40% in Fannie Mae (OTC:FNMA) and a 47% rise in Freddie Mac (OTC:FMCC) stocks has shocked the market, but the real story could be in the overall, untapped opportunity in mortgage- and housing-related exchange-traded funds (ETFs).

New home sales unexpectedly sank to their lowest level since 2022 in January. According to the Census Bureau, new home sales were at a seasonally adjusted annual rate of 587,000 in January.

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

Sales of newly built homes in January were 11.3% lower than January 2025, according to the U.S. Census Bureau. The median price of a home sold in January was $400,500, a decline of 6.8% year-over-year.

State Street SPDR S&P Homebuilders ETF remains a Sell due to technical weakness and high downside risk. XHB's holdings offer sector diversity, but macro headwinds—rising rates, inflation, and market overvaluation—diminish near-term appeal. The probability of further downside is implied based on the fund's technicals and drawdown history, underscoring risk.

CNBC's Diana Olick breaks down the latest housing data.