Today’s pending home sales number came in incredibly weak, with sales falling a massive 11.6% month-over-month.
Oddly, the biggest names in the home building space don’t seem to care.
Toll Brothers is having a massive day, with its shares up over 2%. KB Home is up over 3%.
The industry’s ETFs, the SPDR S&P Homebuilders and the iShares Dow Jones U.S. Home Construction, are both up too.
Maybe the industry has priced in all the weakness it can. Or maybe investors now believe the industry is due for a rebound having finally reached its bottom. Or perhaps record low mortgage rates are encouraging investors.
In any case, it seems the industry’s stocks are now strengthening.