M/I Homes Earnings: Margin Pressure And Demand Challenges Mar The Outlook (Downgrade)

Company Overview - M/I Homes (MHO) is facing challenges similar to other builders due to persistently high mortgage rates, which are worsening affordability issues and putting pressure on housing demand [1] - The company is utilizing rate buy-downs as a strategy to maintain sales pace, although this approach is impacting profit margins [1] Industry Context - The current housing market is characterized by high mortgage rates that are significantly affecting demand and affordability for potential homebuyers [1] - Builders are increasingly relying on financial tools like rate buy-downs to sustain sales, indicating a competitive and challenging market environment [1]