Homebuilding Outlook: Analyzing the Path to Growth

The S&P Composite 1500 Homebuilding sub-industry has seen a year-to-date increase of 43% (compared to the S&P 500's increase of 17%), thanks to a limited resale market. However, this growth may be impacted by interest rates that remain above 7%. Despite this, we anticipate that the industry will continue to benefit from other positive factors, such as the ongoing housing shortage in the United States. We don't anticipate that home buyers will delay their purchases significantly in hopes of lower interest rates.