After a very weak second half of 2018 due to rising mortgage rates, the S&P 1500 Homebuilder group has rallied 35% in 2019 to a new 52-week closing high as of last Friday.  Below is a chart of the S&P 1500 Homebuilder group vs. an inverted look at Bankrate.com’s 30-year national average fixed mortgage rate.  The Homebuilder group bottomed right around the time that mortgage rates peaked, and they’ve been rallying as mortgage rates have been falling.

Below is a custom portfolio we’ve built on our website (custom portfolios are available to Premium members and higher) to see how the individual members of the S&P 1500 Homebuilders group look.  As you can see, every single stock in the group is up at least 15% year-to-date, with some like TopBuild (BLD), Century Communities (CCS), LGI Homes (LGIH), Installed Building Products (IBP), and William Lyon Homes (WLH) all up more than 60%!

At the moment, all but one of the homebuilder stocks is in a sideways trend or long-term uptrend pattern.  The majority are also overbought, meaning they’re currently trading more than one standard deviation above their 50-day moving averages.

Below we show the individual chart patterns for the homebuilder stocks, which Bespoke Premium members also have access to when they create a custom portfolio.  Here you can see that the entire group is made up of mostly bullish chart patterns, with prices trending up and to the right.  Most 50-day moving averages (blue lines) are pointed higher, and the 200-day moving averages (purple lines) are starting to turn higher as well. Start a two-week free trial to Bespoke Premium to create your own custom portfolios now and also unlock Bespoke’s premium equity market research.

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