These housing market indicators will have an impact on homebuilders and residential real-estate ETFs such as iShares U.S. Home Construction ETF (ITB), SPDR S&P Homebuilders ETF (XHB), and iShares Residential and Multisector Real Estate ETF (REZ). Policymakers and advisors closely monitor economic indicators to understand recession risk and the direction of interest rates, as the data can ultimately impact business decisions and financial markets. In the latest report, all components of the index showed improvement, however the recent upturn in consumer sentiment can largely be attributed to easing inflation and stability in labor markets.