Homebuilder Stocks Fall on Downgrades Predicting Seasonal Share-Price Drop

Key TakeawaysShares of several homebuilders fell on Tuesday after analysts at Wedbush Securities downgraded the companies to "underperform."Wedbush analysts said the companies' share prices are likely to fall during the summer as high mortgage rates, inflation and possible delays in interest rate cuts by the Fed weigh on the market for new homes. The analysts see little reason for mortgage rates to fall, and also pointed to the trend of homebuilders relying on price cuts and other incentives to boost sales. ...