As the housing market stalls under rising interest rates, demand for a variety of home products is likely to suffer — from dishwashers made by Whirlpool Corp. to roofing materials made by Owens Corning, JPMorgan analysts said on Tuesday.
“In... As the housing market stalls under rising interest rates, demand for a variety of home products is likely to suffer — from dishwashers made by Whirlpool Corp. to roofing materials made by Owens Corning, JPMorgan analysts said on Tuesday. “In terms of our fundamental outlook, from an industry standpoint, we note that at recent levels, single-family housing starts and existing home sales could decline 25% and 23% , respectively, over the next six months , thereby suppressing new residential and repair/remodel demand for building products well into 2H23,” the analysts said.
They said that the building-products stocks they follow have, on average, underperformed the S&P 500 index SPX for as long as 18 months after the past several cycles of interest-rate hikes out of the Federal Reserve. By contrast, shares of home builders they cover have outperformed the benchmark index over that time-frame.