$NAIL
needs Fed rate cuts. When rates (and especially mortgage rates) fall, housing demand/affordability improves, which supports homebuilder stocks.
Today’s PPI data weakened the cuts are near story in the short term: Headline PPI MoM +0.5% (expected +0.3%), YoY +2.9%. On the core side (especially services/trade services), there’s a sharper increase, which signals inflation pressure hasn’t fully cooled.
Reuters says that based on PPI components, January core PCE could come in as high as +0.5% MoM; the official PCE print will be released on March 13, 2026
Were rate cuts postponed? It’s too ea