Keep an Eye on Homebuilders as Real Estate Heats Up
June 12, 2020 at 09:30 AM EDT
Lower bond yields have helped keep interest rates low thanks to the Federal Reserve telling the capital markets that rates will remain near zero for the next couple of years or so–a good sign for homebuilders as prospective homebuyers pay less for financing. Leveraged plays on homebuilder stocks include the bullish Direxion Daily Homebuilders and Supplies Bull and Bear 3X Shares ( NAIL ), which attempts to deliver triple the daily returns of the Dow Jones U.S. Select Home Construction Index.