Homebuilders have taken off lately with a gap up over $90. T...

Homebuilders have taken off lately with a gap up over $90. There are a lot of reasons to be bullish in 2024. The lack of supply keeps a floor on prices for builders adding new homes. Existing home inventory is likely to remain low unless the Fed is exceptionally hawkish which I do not see happening.

Thus, solid homebuilders should be able to boost profits as prices stay high and new homes dominate the majority of demand in housing.

However, the recent run up is hasty (mortgage rates are still very high) and it's possible the gap around $90 could be revisited before grinding higher.