Investing.com - Homebuilders may not be concerned about the big jump in mortgage rates this year, but investors appear to be.
Homebuilder stocks have suffered as mortgage rates have climbed to a near four-year high.
The SPDR S&P Homebuilders ETF (NYSE:XHB) is down 9% from its January 22 high. The iShares U.S. Construction ETF (ITB) has lost 13% of its value during that time. The S&P 500 is off just 4% from its peak.
Mortgage rates are now half a percentage point higher than they were at the beginning of 2018.
A recent survey of homebuilders found confidence high with respondents most concerned about labor shortages and rising material prices.
Homebuilders had their best year in a decade in 2017. The iShares U.S. Construction ETF gained 48% last year.