Housing demand must strengthen to justify high homebuilder values: BofA

seekingalpha09-19 21:43

Like many risk assets, homebuilder stocks rallied markedly in the months leading up to the Federal Reserve's first interest-rate cut in four years, propelling their valuation to great heights. Bank of...

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Bank of...</p>\n\n<a href=\"https://seekingalpha.com/news/4151129-housing-demand-must-strengthen-to-justify-high-homebuilder-values-bofa\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FDN","symbol_name":"First Trust Dow Jones Internet I","start_time":0,"source_url":"https://seekingalpha.com/news/4151129-housing-demand-must-strengthen-to-justify-high-homebuilder-values-bofa","article_id":"2468514577","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/140469314/image_140469314.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2468514577","pubTimestamp":1726753397,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Like many risk assets, homebuilder stocks rallied markedly in the months leading up to the Federal Reserve's first interest-rate cut in four years, propelling their valuation to great heights. Bank of","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"FDN":"First Trust Dow Jones Internet I","TOL":"托尔兄弟","BK4504":"桥水持仓","DHI":"霍顿房屋","BK4088":"住宅建筑","LU1496350502.SGD":"FRANKLIN DIVERSIFIED DYNAMIC \"A\" (SGDHDG) ACC","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","MTH":"Meritage Homes Corp","NAIL":"Direxion Daily Homebuilders & Supplies Bull 3X Shares","LU0054578231.USD":"BGF SYSTEMATIC SUSTAINABLE GLOBAL SMALLCAP \"A2\" (USD) ACC","PHM":"普得集团","TMHC":"Taylor Morrison Home Corporation","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","BK4585":"ETF&股票定投概念","BK4533":"AQR资本管理(全球第二大对冲基金)","BZH":"贝哲房屋","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","BK4550":"红杉资本持仓","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","ITB":"房屋建筑指数ETF-iShares Dow Jones","BK4588":"碎股","KBH":"KB Home","LEN":"莱纳建筑公司","LU1699723380.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"AP\" (USD) ACC","BK4561":"索罗斯持仓","TPH":"Tri Pointe Homes Inc."},"translate_title":"美国银行：住房需求必须增强才能证明住宅建筑商的高价值是合理的","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KBH":1,"NAIL":1,"MTH":1,"PHM":1,"TMHC":1,"TOL":1,"TPH":1,"LEN":1,"ITB":1,"DHI":1,"BZH":1,"US30Y.BOND":0.9,"US2Y.BOND":0.9,"US12M.BOND":0.9,"US10Y.BOND":0.9,"US3Y.BOND":0.9,"US5Y.BOND":0.9,"US6M.BOND":0.9,"US7Y.BOND":0.9,"FDN":0.82,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"Like many risk assets, homebuilder stocks rallied markedly in the months leading up to the Federal Reserve's first interest-rate cut in four years, propelling their valuation to great heights. Bank of America Global Research believes housing demand will need to improve in order to justify current high valuations. Homebuilder stocks have outpaced the broader stock market this year, with the SPDR S&P Homebuilders ETF (NYSEARCA:XHB) climbing 27% year-to-date vs. S&P 500's 18% ascent. The Direxion Daily Homebuilders & Supplies Bull 3X Shares ETF (NAIL) jumped 56% over the same period, while the iShares U.S. Home Contruction ETF (ITB) gained 25%. BofA analyst Rafe Jadrosich pointed out that homebuilders are currently trading near 2.3 times price-to-book, sitting well above the high-end of the historical range. \"The last two times the sector reached the current valuation level (2018 and 2021), stocks pulled back sharply, however, in both cases the Fed was just beginning to raise rates,\" he wrote in a note. On Wednesday, the Fed cut rates by 50 basis points and signalled another 50 bps of easing by the end of the year. Mortgage rates have been mired in a downward trend since topping out late last year, when Fed Chair Jerome Powell made a dovish pivot that later proved premature as inflation remained sticky. But that's all in the past now, and mortgage rates likely will continue to see further downward pressure as the central bank embarks on its new easing cycle, potentially buoying demand for housing. Homebuilder stocks: D.R. Horton (DHI), KB Home (KBH), PulteGroup (PHM), Toll Brothers (TOL), Lennar (LEN), Beazer Homes (BZH), Tri Pointe Homes (TPH), Taylor Morrison (TMHC), Meritage Homes (MTH).","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.27.0","shortVersion":"4.27.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2468514577"}