Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
722,032+456
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
7.00%0.01
Investments

Homebuilders lead the HW 30

Strong profitability fuels sector, banks take massive hit

Homebuilders took flight on the HW 30 index of mortgage-finance related stocks Tuesday, as companies posted better than anticipated earnings.

A majority of companies in the sector saw the same story unfold this earnings season: new order growth continued to drag among builders, but they still posted profitability gains.

The direct result of profitability is two-fold: lower land acquisition costs and pricing power.

However, rising mortgage rates, extremely tight underwriting standards and reduced affordability remain headwinds for the sector.

Homebuilders didn’t let market setbacks stand in their way Tuesday, with all companies in the sector finishing up.

D.R. Horton (DHI) was the leader for the day, posting an impressive gain of 4.49% as investors fed off the company’s impressive earnings.

The homebuilder posted net income of $139.5 million for the fourth quarter, a 39% jump from $100.1 million a year earlier.

Feeding off the positive sector momentum, Lennar Corp. (LEN) also finished the day strong, up 1%, while homebuilder Toll Brothers (TOL) posted gains, rising 0.62%.

Banking institutions took a beating Tuesday after being the top HW 30 leaders on Monday.

Bank of America (BAC) underperformed for the day, dropping 0.56%, while JPMorgan Chase (JPM) also stopped short, declining 0.24%.

Additionally, Wells Fargo (WFC) was the biggest loser Tuesday, finishing the day down 1.11%.

Investors backed away from the mega banks as the updated list of the world’s too-big-to-fail institutions hit the market, putting Chase near the top of the list.

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please