Rising Mortgage Rates Knock Down Homebuilder Stocks

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.