US homebuilders rise after Democrats sweep Congress
BUZZ-US homebuilders rise after Democrats sweep Congress Updates
** US homebuilders rise after Democrats won a majority 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 7% and 8%
** Peers KB Home KBH.N and NVR NVR.N rise ~9%
** Home improvement chains Home Depot HD.N up 5%, Lowe's LOW.N and Masco Corp MAS.N gain about 7%
** UBS says Democratic control could increase the chances of lower tariffs on building materials
** Brokerage estimates tariffs add ~$7,500 to the cost of a new home, so lower tariffs could improve affordability
** 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
** Including today's move, PHLX Housing Index .HGX up 1.8% YTD
(Reporting by Megavarshini G. Somasundaram and Shania S Thomas in Bengaluru)
((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))