3 Homebuilding Stock to Watch as Mortgage Rates Fall

Mortgage Rates and Market Impact - Mortgage rates fell for the sixth consecutive week, reaching the lowest level since February 2023, with the average contract interest rate for a 30-year fixed-rate mortgage at 6.29%, nearly a full percentage point lower than the same week last year [1] - Applications for mortgages to purchase homes increased by 2% for the week, indicating a positive response to the lower rates [1] Homebuilding Stocks Performance - D. R. Horton Inc (NYSE:DHI) stock is up 0.9% at $187.06, nearing its record high of$193.63 from August 26, with a 32.7% increase this quarter and a 64.3% year-over-year gain [1] - PulteGroup Inc (NYSE:PHM) shares rose 1.6% to $133.60, approaching its all-time high of$136.47, with a 73.5% increase over the last 12 months and a 29.4% gain year-to-date [2] - Lennar Corp (NYSE:LEN) is up 0.8% at $179.59, having reached$181.12 earlier, but remains below its August 26 peak of $186.60, with year-over-year and year-to-date gains of 54.9% and 20.5%, respectively [2]