Home Builder Stocks Struggle As Mortgage Rates Rise

Home building stocks are struggling on Thursday after the 30-year fixed-rate mortgage drifted up for the second consecutive week to 4.60%.

HOUSING MOMENTUM FALTERING

Existing-home sales ran at a 5.38M seasonally-adjusted annual rate in June, the National Association of Realtors said just over a week ago. This past June was the third consecutive month that existing home sales declined. Sales of newly-constructed homes fell 5.3% in June below a downwardly-revised May figure.  The median price of new homes sold during the month was down 4.2% from June of 2017.

PRICE ACTION

Lennar Corporation (LEN) and KB Home (KBH) are down 1.43 and 1.8%, respectively. Toll Brothers, (TOL) is down 1%, while PulteGroup (PHM) is down fractionally.

OTHERS

Other companies in the group include Meritage Homes (MTH) Beazer Homes (BZH).