Why Homebuilder Sales and Stock Prices Are Rising Despite High Mortgage Rates

Key TakeawaysHomebuilder PulteGroup reported better-than-expected first-quarter earnings on Tuesday, with closings increasing 11% as incentives and a shortage of existing homes for sale funneled buyers to new builds.Census Bureau data released Tuesday showed new home sales rose to an annualized rate of 693,000 in March, the most since September.High mortgage rates have locked homeowners into their current loans, depriving the market of existing housing stock and benefiting homebuilders in the process. Share ...