The stock market breathed a sigh of relief last week when June's inflation numbers came out. The Consumer Price Index fell 0.1% for the month, the first time inflation fell in four years.
The June CPI was much better than expected and has the broad market set up to rally over the next six to 12 months. The rally is driven by the expectation for FOMC interest rate cuts, which will reduce the cost of money and reinvigorate the bull market, assuming no recession unfolds.
We have narrowed our search to five homebuilders' stocks. These are: KBH, NVR, PHM, TOL, DHI.
The housing market has faced headwinds in recent times, primarily due to the impact of rising interest rates. This surge in borrowing costs has slowed down homebuying activity, leading to a decline in homebuilder stock prices.
Homebuilder stocks jumped Thursday on hopes that mortgage rates will start to significantly downshift this year.
D.R. Horton (DHI) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Sales of new U.S. single-family homes slipped in May, marking the lowest level in six months, according to the U.S. Census Bureau's latest report. New home sales — a leading housing market indicator based on signed contracts, not closings — decreased 11.3% to a seasonally adjusted annual rate of 619,000 units in May from April, according to the Commerce Department's report released on Jun 26, 2024.
The housing market in 2024 continues to be complex and volatile for homebuyers and investors. Interest rate volatility, affordability concerns, and persistent inflation present ongoing challenges for the industry.
The latest trading day saw D.R. Horton (DHI) settling at $143.46, representing a -0.19% change from its previous close.
May's cooler-than-expected consumer price index (CPI) on a year-over-year basis is pushing bond yields lower, and the prospects of an interest rate cut in September are increasing.
Our theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders including DR Horton and Pulte Group has been a mixed performer this year, rising by just about 4% year-to-date. This compares to the S&P 500, which has gained almost 13% over the same period.
In the latest trading session, D.R. Horton (DHI) closed at $143.70, marking a -1.64% move from the previous day.