Falling mortgage rates and a rebound in the bond market is
giving a boost to the homebuilder sector with stocks gaining 1-2%
this afternoon. Last Thursday, Freddie Mac reported that the
30-year fixed mortgage rate fell to 4.10%, a four-month low and its
second consecutive decline. This came on a decline in the 10-year
yield from its mid-October high of 2.75% to 2.51% one week
The strength in the homebuilder sector is also attributed to
expectations for strong Q3 earnings from DR Horton and
Taylor-Morrison, both of whom report on November 12. Despite recent
declines in pending home sales and existing home sales due to
slightly higher mortgage rates in September, most of the larger
homebuilders are expected to post double-digit growth for Q3.
Shares of Pulte Group are 2% higher at near $18.00 with a
52-week range of $14.23 to $24.47.
The Ryland Group is up 2% to near $40 with a 52-week range of
$29.63 to $50.42.
DR Horton is near 2% higher at $18.85 with a 52-week range of
$17.52 to $27.74.
Finally, KB Homes is 1.5% higher with a 52-week range of $13.09