Homebuilder stocks pull back after U.S. house prices slip in June

Vulcan Materials Co

27/08/2024 20:05

** Shares of U.S. homebuilders slip after data shows U.S.
single-family home prices fell 0.1% in June on a monthly basis 
    ** PHLX Housing Index  .HGX  falls 1.1%, on pace for the
worst day in nearly three weeks 
    ** U.S. home prices rise 5.1% on an annual basis in June,
slowest annual rise since July 2023, as a large inventory of
homes for sale and higher mortgage rates limit price gains 
     ** D.R. Horton  DHI.N , Meritage Homes Corporation  MTH.N 
and PulteGroup  PHM.N  fall between 0.8% and 1.6%. 
    ** Toll Brothers  TOL.N  down 0.9%; Wedbush and KBW both
hike price targets on stock 
    ** Construction materials supplier Vulcan Materials  VMC.N 
drops 3.5%, biggest drag on PHLX housing index 
    ** Homebuilder stocks jumped to near one-month high on
Friday after Fed's Jerome Powell signaled September rate cut in
Jackson Hole speech
    ** Lower interest rates mean lower mortgage rates, likely
helping homebuilders 
    ** Including today's moves, HGX up about 19% YTD versus 18%
rise for S&P 500  .SPX  

 (Reporting by Lisa Mattackal in Bengaluru; Editing by Tasim
Zahid)
 ((LisaPauline.Mattackal@thomsonreuters.com))