The real estate stock trade came back to life last Friday—and no one rallied harder than homebuilders.
The SPDR Homebuilders ETF (NYSE:XHB) soared 5.1%, marking the strongest move across all major equity industries.
Behind the surge? Fed Chair Jerome Powell‘s dovish pivot at Jackson Hole, which reinforced expectations that the Federal Reserve is preparing to cut rates, possibly as soon as September.
For a sector as deeply tied to borrowing costs as housing, the message was loud and clear: easier financial conditions are coming, and homebuilders stand to benefit first.
Powell Clears The Way For Housing Market Rebound
In his closely watched Jackson Hole speech, Powell said the Fed is ready to “adjust our policy stance” in light of shifting risks, particularly on the jobs front.
The tone marked a notable shift from inflation-first messaging, signaling a greater willingness to support growth—even if that means inflation stays slightly elevated for now.
Markets took it as a green light for a September rate cut, and traders quickly rotated into sectors that historically thrive on lower interest rates—housing at …