Homebuilders reap benefit of cheapest-ever U.S. mortgages

Homebuilders are among this year’s best-performing U.S. stocks, and record-low mortgage rates have contributed to the industry’s strength. The S&P 1500 Homebuilders Index ended last week with a year-to-date gain of 27%, according to data compiled by Bloomberg. The group ranked 11th of 147 industries in the S&P Composite 1500, tracking components of the S&P 500 and smaller-company indexes. As the builders rose, the average rate on 30-year fixed mortgages fell as much as 0.88 percentage point to a record low 2.86%, according to Freddie Mac. Last week’s average was 2.87%.