Homebuilders - A Thought Experiment (ITB)

I wonder if home builders are a good investment here, or did they front run all this building that they are doing and the recession takes them down? We are approaching all time high before a recession - (lower rates would be a stimulus, higher for longer means resistance)

Bottom line - will consumers with an average EPR nationally of 3.5% trade in those rates for 7% rates - and for what reason? New Job. Better Life. New House.

If (as) rates come down this decision gets easier.

I'm a housing bull, but we are at some serious resistance here soon (all time highs)?

Let's look at why the consumers is going well, low rates and low debt service!

ETF - ITB (largest builder ETF)

Builders are the only industry group that can solve this inventory problem.

Mortgage Advisor Tip: Look at industries to invest in that you understand well.