Housing stocks are surging after data shows new home construction jumped in March

• The iShares U.S. Home Construction ETF climbed Tuesday with shares of the country's largest home builders rising.
• The ETF rose after data showed housing starts for single-family homes rose 2.7% in March. 
• The ETF has jumped this year and may be signaling better conditions for home builders.   

A $1.6 billion gauge of homebuilding stocks jumped on Tuesday after data showed a monthly increase in construction of new homes, a potential sign of stabilization in a housing market that's struggled from the blow of rising interest rates.