With interest rates rising again, it's time to talk housing, which is once again showing that the K-shaped economy is alive and well. The Federal Reserve raised its benchmark rate by 25 basis points on Sept. 16, and a hot inflation report on Oct. 15 renewed concerns about additional hikes later this year.
That is another challenge for a housing market already struggling with affordability across much of the country. For investors, there are two approaches: a luxury homebuilder like Toll Bros. Inc. (NYSE: TOL) and an entry-level homebuilder like D.R. Horton Inc. (NYSE: DHI). And as you might expect in a K-shaped economy, the luxury brand is outperforming its peers.
