The back up in interest rates since the Fed hinted at a Fall tapering of their QE program has put a dent in many of the housing related stocks.
Housing has come roaring back in many markets, but is still well below the peak numbers from the unsustainable period in 2006-'07. It's hard to imagine the Fed slamming on the breaks too fast after they've worked so hard to get the economy going.
Yesterday, FOMC voting member and St. Louis Fed president James Bullard was out saying among other things, that the Fed needs to see more data before deciding on a taper this Fall, stating that FOMC and private market forecasts for growth have been too high.
We know that a mild tapering of QE doesn't stop the overall stimulus. But the mere idea of less QE has moved rates higher in a short period of time.
Here's a weekly look at one housing sector ETF. It looks to be forming a potential head and shoulders top similar to what occurred back in the summer of 2011 when the index fell over 27%.
Housing has come roaring back in many markets, but is still well below the peak numbers from the unsustainable period in 2006-'07. It's hard to imagine the Fed slamming on the breaks too fast after they've worked so hard to get the economy going.
Yesterday, FOMC voting member and St. Louis Fed president James Bullard was out saying among other things, that the Fed needs to see more data before deciding on a taper this Fall, stating that FOMC and private market forecasts for growth have been too high.
We know that a mild tapering of QE doesn't stop the overall stimulus. But the mere idea of less QE has moved rates higher in a short period of time.
Here's a weekly look at one housing sector ETF. It looks to be forming a potential head and shoulders top similar to what occurred back in the summer of 2011 when the index fell over 27%.
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