d.r. horton down 10% kb down 13%. despite low interest rates and what has been high home buyer demand the etf is on its worst pace since 2011 joining us now to talk is the home builder analyst jack, why are these stocks doing, in some cases, worse than the of all market when the one thing people say could be a help here is housing demand >> i think part of the problem today is the issue of sentiment. most people don't go out and buy a house because rates pull back. first time buyers, aren't saying now the mortgage rates are at 320, 325, people are house ng fall off the economy overall pleading to some job loss at the corporate level. underlying fundamentals for housing remain strong. fundamen housing remain strong. >> is that fear rational would you go so far as to say the people, look, this sector can hang in there, even if the economy slows? >> we would. we upgraded from neutral to positive last week think about fundamentals of housing. you've got a supply and balance. probably underbuilt just roofs 500,000 to a mil

d.r. horton getting hit the hardest down 1.5%.ts up facing big challenges from the coronavirus itself diana olick is here with details. >> kelly, this weekend will be a good gauge of how buyers are reacting, but they did lose that great benefit, mortgage rates hit a record low but moved sharply higher in the last two days back up to january levels several agents have told me they are canceling open houses, others are continuing with lots of sanitizing and even face masks to greet you instead of warm cookies in a quick survey this week the nar said 16% of realtors have seen a drop in buyer interest from coronavirus and one in four sellers are changing how their house is marked, that is, many taking it on-line. red finoffering virtual showings to have an agent walk around the house with a tablet while you ask questions from your home. we get home builder sentiment next week and adding questions about supply chain issues so we'll get a read on how all of this is hitting the builders not hitting the builder stocks too well today. >> t

rates, the 30-year conventional will probably come down to about 3.25 so it's safe if you've bought d.r. hortonthey're well run companies and i think housing is domestic. we don't really have to rely on lumber from china. we can get plenty of it from the united states and canada and i think those are safe havens also in this type of environment. >> just quickly, what do you say to the main point that we heard from jeff ubben there, that with rates so low and trying to work out which stocks are attractive, that value stocks become in a relative sense much less attractive than maybe they were 10, 20 years ago when calculations perhaps were more prominent? >> yes, he's absolutely right. ever since 2007, value stocks are systematically lagged growth and small and mid cap from 1946 onward had done very well, large cap has dominated small and mid cap. so i think he's right. there's another factor when i started in the business in 1980, there were 10,500 u.s. publicly traded companies. we're down to 2600 publicly traded companies a lot of companies are in etfs so all the companies, good and bad, get b