For investors seeking momentum, Hoya Capital Housing ETF HOMZ is probably on radar. The fund just hit a 52-week high and is up 36.31% from its 52-week low price of $31.18/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

HOMZ in Focus

The underlying Hoya Capital Housing 100 Index is designed to track total spending on housing and housing-related services across the United States. The product charges 30 bps in annual fees (See: all Real Estate ETFs here).

Why the Move?

The housing sector of the broad stock market has been an area to watch lately, given the decline in mortgage rates. Mortgage rates have been declining for consecutive weeks, reaching their lowest point since June, fueled by the Fed adopting a dovish stance and estimates of rate cuts in 2024.

The housing market appears to be on the brink of improvement which may make things easy for homebuyers, helping with affordability hurdles. Home sales are predicted to increase in 2024, while home prices are estimated to experience a decline next year.

More Gains Ahead?

Currently, HOMZ has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance in the near term, with a positive weighted alpha of 31.85, which gives cues of a further rally.

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Hoya Capital Housing ETF (HOMZ): ETF Research Reports

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