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ITB
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33 days

Homebuilders are slashing prices at the highest rate in 3 years

1. Builders are cutting prices at the highest rate in three years. 2. Builder confidence remains below 50, indicating negative sentiment. 3. 38% of builders reported price reductions averaging 5% in July. 4. Single-family housing starts expected to decline due to affordability issues. 5. Mortgage rates remain elevated, impacting buyer interest and affordability.

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FAQ

Why Bearish?

The construction sector is experiencing downward pressure due to declining builder confidence and affordability concerns, which historically leads to weakened performance in related ETFs like ITB.

How important is it?

Current trends in construction and housing affordability closely tie to ITB's performance, making this news significantly impactful.

Why Short Term?

Evidence of immediate price reductions and a decline in builder sentiment suggests potential short-term impacts on ITB.

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