For investors seeking momentum, iShares U.S. Home Construction ETF (ITB Quick QuoteITB - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 69.20% from its 52-week low price of $71.22/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:

ITB in Focus

The underlying Dow Jones U.S. Select Home Builders Index is a subset of the Dow Jones U.S. Household Goods Index. It is a free-float adjusted market capitalization-weighted index. It measures the performance of the home construction sector of the U.S. equity market. The product charges 40 bps in annual fees.

Why the Move?

The chances of a Fed rate cut in the month of September has probably boosted homebuilding stocks and ETFs. Lower interest rates make borrowing cheaper, which can boost demand for mortgages and subsequently for home purchases. Cheaper borrowing costs can also encourage builders to undertake more projects, thereby boosting homebuilding activity.

More Gains Ahead?

Currently, ITB might continue its strong performance in the near term, with a positive weighted alpha of 41.76, which gives cues of a further rally.