Housing Stocks Are Down. But There Are Already Signs of a Rebound.

Plunging orders. Widespread price discounting. Shrinking profits. These are just some of the factors weighing on home builders after surging mortgage rates burst the pandemic-era real estate boom.

Home-building stocks, however, are looking past the current gloom. Though many of them are down 30% or more this year, they’ve gained an average of 20% off the June lows—and even the latest downbeat housing data hasn’t knocked them down.