Warning signs are cropping around home construction stocks.
A popular homebuilder-tracking ETF, the ITB, posted its worst day in three months on Tuesday, led to the downside by D.R. Horton. This comes on the heels of surging Treasury yields, which traditionally hurt housing stocks.
With the notable rise in the 10-year Treasury yield, mortgage rates have also moved higher. When you combine this with the disappointing earnings results out of Home Depot, this raises concerns about homebuilding stocks.