US homebuilders rise after Democrats sweep Congress
BUZZ- US homebuilders rise after Democrats sweep Congress ** US homebuilders rise before the bell after Democrats seized control of the Senate and House in the midterm elections
** Shares of D.R. Horton DHI.N, Lennar LEN.N and PulteGroup PHM.N up between 3% and 5%
** Peers KB Home KBH.N and NVR NVR.N rise ~2%
** UBS says Democratic control could increase the chances of lower tariffs on building materials
** Estimates tariffs add ~$7,500 to the cost of a new home, so lower tariffs could improve affordability
** Brokerage says further expansion of state and local tax deductions could boost disposable income and support housing demand, particularly in high-tax states
** Adds the More Homes on the Market Act and First Home Affordability Act could improve housing turnover and first-time buyer affordability, benefiting homebuilders
** PHLX Housing Index .HGX down ~4% YTD
(Reporting by Megavarshini G. Somasundaram in Bengaluru)
((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))