U.S. homebuilders drop as mortgage rates hit 16-yr high

LGI Homes

12/10/2022 15:54

** Shares of U.S. homebuilders fall in early Weds trade as
mortgage rates continue to rise
    ** Avg interest rate on most popular U.S. home loan rose
last week to 6.81%, highest since 2006, according to Mortgage
Bankers Association (MBA) data
    ** Lennar Corp  LEN.N  down 1.5%, Pultegroup Inc  PHM.N  off
1.8%, D.R. Horton Inc  DHI.N  declines 2.1% and Toll Brothers
Inc  TOL.N  falls 1.7%
    ** PHLX Housing index  .HGX  last off 1.4% on the session,
and now down ~32% this year
    ** The Fed has been aggressively hiking rates to battle
inflation. Money markets pricing in near-certain probability
policy makers will boost rates by 75 bps for 4th straight time
when they meet in Nov  US/ 
    ** YTD, LEN, PHM, DHI and TOL all down between 30%-40% with
moves on Weds
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))