NEW YORK ( TheStreet) -- We have been seeing improved housing data over the last two months, but the FOMC threw cold water on the housing market Wednesday when Fed Chairman Ben Bernanke hinted that quantitative easing could begin to be unwind in mid-2014. U.S. Treasury yields and hence mortgage rates moved higher.My benchmark for the housing market is the PHLX Housing Sector Index (HGX) (177.41) which is the first close below its 200-day simple moving average since Dec. 20, 2011. On May 20 the housing index set a multi-year high at 210.01 up 22.6% on the year. Currently the index is up just 3.6% year to date, and is 15.5% below the May 20 peak.
Homebuilders Hurt by Fed Policy
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.