D.R. Horton(DHI) CNBC·2024-11-06 17:37Group 1: Mortgage Rates and Economic Impact - The average rate on the 30-year fixed mortgage increased by 9 basis points to 7.13%, the highest since July 1, 2023 [1] - Mortgage rates are influenced by bond yields, which have risen due to expectations surrounding Trump's victory and inflation concerns [2][6] - A homebuyer purchasing a 1,941 in early September to 216 [7] Group 2: Housing Market Reaction - Housing stocks, including major builders like Lennar, D.R. Horton, and PulteGroup, fell approximately 5% in midday trading following the election results [3] - Retailers such as Home Depot and Lowe's also experienced declines of about 3% [3] - The increase in mortgage rates and inflation expectations has a direct impact on builder stocks, which are sensitive to these changes [3] Group 3: Supply and Demand Dynamics - There was a 29.2% increase in the number of homes actively for sale in October compared to the previous year, marking the highest level of active inventory since December 2019 [8] - Pending sales of existing homes rose by 7% in September compared to August, indicating a surge in demand prior to the recent rate increases [7] Group 4: Industry Outlook - The National Association of Home Builders expressed optimism about working with the incoming Trump administration to promote a pro-housing agenda aimed at increasing housing supply and addressing affordability issues [5] - Trump’s focus on deregulation and opening federal land for home construction could influence future housing policies, although no detailed housing plan was presented [4]