Investors and home buyers alike have watched eagerly as market optimism for homebuilder stocks has grown throughout the last year. The iShares U.S. Home Construction ETF (BATS: ITB), a benchmark for the broader industry, rose to a 1-year high in mid-October and is currently up more than 38% in the past 12 months.
The bullish view that has predominated in the homebuilder space may be due to anticipation of the Federal Reserve's first rate cut in years, which was confirmed in the FOMC meeting in September.
