The slide in interest rates has given life to the housing sector.
As you know, rising rates lead to mortgage rates not seen since the early 2000’s. That hit the housing sector pretty hard… but, likewise, the decline in interest rates is giving the housing sector new life.
Today, we look at a chart of the HGX Philadelphia Housing Index to show how sensitive the housing sector is to interest rates… and see how price is showing that the housing market isn’t dead just yet.
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$HGX Philadelphia Housing Sector Index Chart
Over the past several weeks, interest rates have fallen and the housing sector has perked up. The Philly housing index has been in rally mode and a recently formed flag pattern may indicate that the short-term rally has further to go. And if a “cup” pattern forms, then another leg higher may come this summer. Stay tuned.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
