U.S. homebuilders fall as mortgage rates rise

Applied Energetics

14/04/2022 19:05

** Shares of U.S. homebuilders D R Horton Inc  DHI.N ,
Lennar Corp  LEN.N , Pultegroup Inc  PHM.N , Toll Brothers Inc
 TOL.N  down between 1.6% and 2.1% in afternoon trade
    ** Mortgage rates hit 5% this week for the first time in
over a decade vs 4.72% a week ago, according to data released by
mortgage finance agency Freddie Mac
    ** Mortgage applications for new home purchases in March
decreased 5% vs a year ago, according to data from Mortgage
Bankers Association (MBA) Builder Application Survey (BAS) 
    ** Elevated home prices, rapidly increasing mortgage rates,
and higher costs and supply shortages for building materials are
all affecting sales growth - Joel Kan, associate vice president
of economic and industry forecasting, MBA
    ** Up to Wednesday's close, shares of DHI, LEN, PHM, TOL had
lost between 25.3% and 34.8% YTD

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