Homebuilders Are Concerned About Inflation

It’s a fairly quiet day of trading on Wall Street. This morning’s report from homebuilders shows that confidence is still high, but there are concerns about inflation.

Builder sentiment in the single-family housing market was unchanged at 83 in May, according to the NAHB/Wells Fargo Housing Market Index. Anything above 50 is considered positive sentiment.

The index had plummeted to 37 last May, as the pandemic lockdown hit and the housing market shut down. It then rebounded dramatically in June and July, as consumers rushed out to buy suburban homes, seeking more space for working and schooling from home.

Builders now say they continue to see a steady stream of buyers, due in large part to the extreme shortage of existing homes for sale. Continued low mortgage rates are helping some with affordability, but with prices rising fast, purchasing power is weakening.

The overall market is down today with tech down the most. Energy is up the most and some defensive sectors like Staples and Healthcare are just barely positive.

I posted this on Twitter so I’ll report it here. Here’s a list of stocks you may not have known are publicly traded:

Churchill Downs (CHDN)
MSG Sports (Knicks and Rangers) (MSGS)
WD-40 (WDFC)
Jack in the Box (JACK)
Nathan’s Famous (NATH)
Tootsie Roll (TR)
Utz Brands (UTZ)
Boston Beer (Sam Adams) (SAM)
Value Line (VALU)
Mace Security (MACE)
Crazy Woman Creek Bancorp (CRZY)

Posted by on May 17th, 2021 at 1:15 pm


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