Manufactured Home Builders Stock Index
The Manufactured Home Builders Index (MHBI) dropped -13.8% in December, following the broader ITB residential construction index, which declined by -16.4% for the month. Housing stocks faced their largest declines as interest rates climbed after the Federal Reserve set a hawkish tone despite lowering the overnight rate by a quarter of a point. The S&P 500 also finished down for the month, but with a more modest -2.4% decline.
Despite December’s downturn, the MHBI closed 2024 with a robust gain of +20.1%, trailing the S&P 500’s +24.9% increase but significantly outperforming the ITB’s modest +2.1% rise. Elevated mortgage rates and housing prices continuing to rise due to lack of inventory in the existing site-built market have weighed heavily on site-built home builder stocks in 2024. Manufactured home builder stocks, however, have been resilient in this challenging environment, likely due to the cost savings factory-built homeowners can benefit from and the personal property lending model that funds most of the purchases.
Manufactured Home Builders Stock Index (MHBI)
The Manufactured Home Builders Stock Index (MHBI) is a capitalization-weighted index developed by TMHA that includes publicly traded companies whose primary line of business is the construction and sale of manufactured housing.
SPDR S&P 500 ETF Trust (SPY)
The SPDR S&P 500 ETF Trust (SPY) is included as a market benchmark to see how manufactured home builders are doing in comparison to the broader US equity market.
