Home Builders Construct a Rally on Low Rate Hopes

By StocksFOXBusiness

The lousy December jobs report is fueling expectations that 10-year Treasury yields will hold below the 3% level.

The 10-year yield fell to a three-week low of 2.871% Friday morning amid easing worries that the Federal Reserve would be in a hurry to wind down its bond-buying stimulus at a faster pace in the coming months.  This expectation that rates will remain low is giving home builder stocks a boost, since low 10-year yields correlate strongly with low 30-year fixed mortgage rates.  The 16 homebuilder names below are up an average of 1.9% while the broader market is flat to slightly down:

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Home Builder Stocks Rally

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