US homebuilders climb as yields tumble after weak jobs report

Pultegroup

05/09/2025 14:09

** Shares of interest-rate sensitive homebuilders rise premarket after weaker-than-expected payrolls report sends yields tumbling

** D.R. Horton DHI.N up 2%, Lennar LEN.N up 3% and Pultegroup PHM.N up >1% before the bell

** Benchmark U.S. 10-year yield US10YT=RR slides to around 4.07% after U.S. nonfarm payrolls increased by only 22,000 jobs last month, reinforcing expectations the Fed will resume cutting rates at its next meeting this month US/

** Retreating yields can potentially lead to reduced mortgage rates, benefitting homebuilders by making homes more affordable for consumers

** In addition, home improvement retailers Home Depot HD.N and Lowe's LOW.N both up ~1% before the bell, and shares of building products supplier Builders FirstSource BLDR.N climbing nearly 3%

** Through Thurs close, S&P 1500 Homebuilding index .SPCOMHOME up 17% and PHLX Housing Index .HGX up 11% YTD

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

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