The current interest rate environment is driving mortgage rates higher, which in turn are having their own effect on homebuilder stocks, such as D.R. Horton (DHI), Lennar (LEN), and PulteGroup (PHM). Many stocks across the homebuilding sector have been noted to be in a downturn since the Federal Reserve's rate pause last week. Yahoo Finance's Jared Blikre joins the show to break down how these stocks are performing amid elevated volatility. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
U.S. housing data revealed permits and home completions rose in August, while housing starts dropped month-over-month and year-over-year. Jessica Lautz, National Association of REALTORS Deputy Chief Economist and Vice President of Research, provides insights into homebuilder and consumer sentiment, between supply conditions in the housing market and mortgage rates above 7%. "At least we're not looking at last year's really strong demand, that frenetic activity that was going on in the real estate market where we had actually had 5.5 offers for every... [listing]," Lautz states. "If you're a consumer you have an opportunity to tour a home. — you are buying it at a higher interest rate, you may have the opportunity to refinance that in the future. So that could be the silver lining." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
U.S. homebuilder confidence fell to a five-month low, citing supply and worker shortages amid rising material costs. Yahoo Finance Housing Reporter Dani Romero outlines how homebuilders are attempting to balance home prices in September by slashing prices.