A torrid rally in homebuilder stocks that’s put the group on track for its best month this year shows few signs of stopping.
Shares of homebuilders have jumped 22% in the 10 days through Monday a rate of expansion last seen in May 2020. A softer-than-expected inflation print earlier in July bolstered bets that the central bank will begin easing sooner than expected. And encouraging results from industry bellwether D.R. Horton Inc. last Thursday sparked optimism about growth prospects for the group.
Risk-on sentiment in homebuilders was also aided by a broader rotation away from the perceived safety of technology megacaps and into riskier corners of the market earlier this month.