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How long can home builders defy gravity?

We've seen a powerful rally in home builders since October, which seems to be largely driven by falling rates (and increasing bond prices). In the chart below I compare XHB (the S&P home builders ETF) vs IEF (the iShares 7-10 year Treasury ETF).

We can see the positive 83% 60 trading day correlation between XHB and IEF, which has been rather constant for 2022. Mortgage rates are largely set by the 10-year note yield, so this ETF is a decent proxy to use for intraday data on StockCharts.com.

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