Bottom Line: While most stocks fell substantially last week, homebuilders rose. The Homebuilding Index is now up 5.6% over the last 11 days while the S&P 500 has declined 1.9% during the same period. With Friday's plunge in the yield of the 10-yr T-note, mortgage rates should fall further in the near future. The Homebuilding Index is down 16% from its all-time high set in March and has a P/E on forward 12 month earnings estimates of 7.2. This index will likely test those recent highs by year-end.
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