After two years of surging home prices, suddenly the market is worried about a crash in the housing market. With mortgage rates rising fast, home prices already stretched, and fears of a recession sweeping the market, the pieces seem to be in place for a pullback in home prices. Despite the beginning of a decline in home prices, the U.S. still has a national housing shortage as homebuilders pulled back in home construction in the decade following the housing crisis, and as of 2019 the U.S. had a shortage of 3.8 million homes, according to Freddie Mac.
Lennar (LEN) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Rising mortgage rates and affordability issues are potent headwinds for Lennar (LEN).