U.S. homebuilders rally as yields tumble

LGI Homes

04/04/2025 17:34

** Shares of interest rate-sensitive homebuilders jump on Fri as yields retreat sharply

** Benchmark U.S. Treasury 10-year yield US10YT=RR tumbled below 4% to six month lows as China tariffs retaliation stoking recession jitters US/

** Declining rates can potentially lead to lower mortgage rates, which could benefit homebuilders

** PHLX Housing Index .HGX one of the few bright spots on Fri, up 0.3%

** HGX biggest winners include: DR Horton DHI.N 6%, Lennar LEN.N 4%, Pultegroup PHM.N 4%, LGI Homes LGIH.O 4%

** In S&P 500 .SPX, building products maker Builders FirstSource BLDR.N up 1%

** And home improvement retailers rise: Home Depot HD.N up 0.5% and Lowe's LOW.N up >1%

** HGX down 10% YTD. SPX plunging nearly 5% on Fri, extending 2025 loss to >12%

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))