April U.S. home sales fall on high interest rate - J.P. Morgan

Applied Energetics

20/05/2022 14:50

** J.P Morgan says April total existing home sales falls
2.4% sequentially to 5.61 mln, roughly in line with Street’s
outlook for 2.3% decline to 5.64 mln 
    ** Brokerage expects housing demand to moderate over next
several months due to recent rise in rates
    ** At the same time, expects housing market to remain
reasonably healthy 
    ** We maintain our less constructive, more selective
approach towards homebuilding stocks, as several headwinds are
likely to persist and impact valuations over near to medium term
- J.P. Morgan
    ** Brokerage says investor concerns regarding rising
interest rates and sustainability of earnings are likely to
persist over near to medium term
    ** U.S. average 30-year mortgage rate falls 4 bps to 5.49%
in week ended May 13, according to Mortgage Bankers Association
 urn:newsml:reuters.com:*:nN9N26W02G
    ** Up to Thursday's close, shares of U.S. homebuilders D R
Horton Inc  DHI.N , Lennar Corp  LEN.N , Pultegroup Inc  PHM.N ,
Toll Brothers Inc  TOL.N  had lost between ~27% and ~39% YTD  

 (Reporting by Kannaki Deka in Bengaluru)
 ((Kannaki.Deka@thomsonreuters.com))