Sales of new homes have soared as buyers have taken advantage of a decline in mortgage rates and more builders offering incentives. https://t.co/IwXWKOEM37 ...

Over the summer, many of the home builders started rallying in anticipation of rate cuts from the Fed. But now the Feds start cutting and the group keeps rolling over. So what's going on here.Didn't we want rate cuts to jolt the industry out of the doldrums. Well, let's look at what happened when some of the key home builders recently reported. First, we got Lenar, the Miami based developer that's become one of the largest home builders in the country.Lenar kicked these off last Thursday when they reported ...

Core Insights - The Federal Reserve's recent rate cuts may not effectively lower mortgage rates, raising concerns for homebuilders [1] - Lennar reported disappointing quarterly earnings, with management indicating that lower mortgage rates have not yet led to increased sales [2] - KB Home's performance was slightly better, but the company also cut its full-year forecast and noted a lack of order increases despite changing mortgage rates [3] Group 1: Federal Reserve Impact - The Fed's 0.25% rate cut did not lead to a decline in longer-term yields, including mortgage rates, which actually rose [1] - There is skepticism about whether the Fed's actions will positively impact the housing market, as seen in previous instances where rate cuts did not yield expected results [1] Group 2: Company Performance - Lennar's quarterly earnings were soft, with management lowering earnings estimates and indicating that sales incentives negatively impacted margins [2] - KB Home's report showed some key metrics better than expected, but the company significantly reduced its full-year forecast [3] - Both companies expressed optimism about future rate reductions and improved business conditions, but current sales volumes have not increased meaningfully due to mortgage rates [4]

Housing affordability is at record lows. To get back to 2019 affordability, we would need:– A 38% drop in home prices– A 60% increase in household income– A 415-bps drop in mortgage ratesHow did the housing market get this bad?[Presented by @JoinHorizon_] https://t.co/aRgHqJury7 ...

Core Insights - The U.S. housing market has reached a record value of $55.1 trillion in June 2025, marking a $20 trillion (57%) increase since 2020 [1] - The growth rate has slowed to 1.6% over the past year compared to the rapid increases seen from 2020 to 2022 [2] Regional Performance - The Northeast, particularly states like New York, New Jersey, Pennsylvania, and Illinois, has experienced significant growth, with New York alone contributing $216 billion to the total U.S. growth [3] - In contrast, states like Florida, Texas, and California have seen a cooling in their housing markets, attributed to rising home insurance costs and property taxes, exacerbated by climate change-related natural disasters [4] Mortgage Rates and Housing Inventory - Mortgage rates have increased from a low of 2.65% in January 2021 to a peak of 7.79% in October 2023, with the average rate for a 30-year mortgage at 6.26% as of September 18, 2024 [5] - In New York, housing demand has outstripped supply, with inventory at half of pre-pandemic levels, while new construction in the Sun Belt states has created "pockets of affordability" for first-time buyers [6] Home Prices - As of July 31, the median sale price for a home in the U.S. was $373,333, and the average home value was $363,505 as of August 31 [7]

Welcome back to Squawk on the Street. Real estate one of the worst performing sectors on the year behind just health care and consumer staples. All underperformers.Home wielders across the board remain in correction territory which means they're 10% or more from their 52- week highs. Lenar is the worst of the group. And then watch KB Home shares today reducing fullear sales guidance due to lower prices.The company COO saying on the call they're not seeing the uptick in demand they'd expect given the recent ...

Mortgage rates in the US rose, shifting direction after a steady string of declines https://t.co/xUZRcLY1ty ...

Sales of existing homes dipped in August, after high prices kept sales in check despite easing mortgage rates https://t.co/pd7lhO7y0I ...

Housing Market Sales - Existing home sales were essentially flat in August, with a seasonally adjusted annualized rate of 4 million units, down 0.2% from July, but up 1.8% from August of last year [1] - The street was looking for a slightly bigger drop of 1 to 1.5% in existing home sales [2] - Sales were strongest in the Midwest, weakest in the Northeast [2] Housing Market Supply - Supply is dropping, down 1.3% from July, but still up 11.7% year-over-year [2] - There is now a 4.6-month supply of homes for sale, considered lean [3] Housing Market Prices & Time on Market - The median price of a home sold in August was $422,600, up 2% year-over-year [4] - Homes are staying on the market longer, 31 days, up from 26 days last year [4] Buyer Trends - First-time buyers remain low at 28% of sales [4] - All-cash purchases account for 28% of sales, up from 26% a year ago [4] Mortgage Rates - Mortgage rates are around 6.37% [5] - The market is waiting for economic indicators to influence mortgage rates [6]

Core Insights - Existing home sales in August were flat at a seasonally adjusted annualized rate of 4 million units, down 0.2% from July but up 1.8% year-over-year [1] - The market was expecting a larger decline of 1.5%, with sales strongest in the Midwest and weakest in the Northeast [2] - Supply of homes for sale decreased by 1.3% from July, although it remains up 11.7% year-over-year, indicating a shift in market dynamics [2][3] Sales and Pricing Trends - The median home price in August was $422,600, reflecting a 2% increase year-over-year, marking the 26th consecutive month of annual price gains [4] - Homes are staying on the market longer, averaging 31 days compared to 26 days last year, indicating a potential cooling in buyer demand [4] - First-time buyers represent only 28% of the market, while all-cash transactions account for 28% of sales, up from 26% a year ago [4] Mortgage Rates and Economic Indicators - Current mortgage rates are around 6.37%, with minimal movement since the Federal Reserve's rate cut, which brought rates to a three-year low [5] - The market is awaiting further economic indicators to influence mortgage rates, following a recent surprise in new home sales data [6]