Gen X is inching closer to retirement, but many of the challenges waiting ahead are the same ones baby boomers are struggling with right now. Some of these issues can disrupt even the most carefully built retirement plan. If you’re part of Gen X, make sure you’re aware of these retirement problems so that you have time to adjust and avoid the financial surprises many Boomers are seeing. Housing Affordability Many Boomers assumed they would downsize, cash out some equity and move into a smaller place du ...

​D.R. Horton, Inc. (NYSE:DHI) is one of the Undervalued Cyclical Stocks to Invest In. Wall Street is cautious on D.R. Horton, Inc. (NYSE:DHI). Recently, on January 9, Michael Dahl from RBC Capital reiterated a Sell rating on the stock and lowered the price target from $118 to $117. Earlier on January 7, Citizens downgraded the stock from Market Outperform to Market Perform, without disclosing any price targets. ​Analysts at RBC Capital noted that they kept an Underperform rating on the stock because of t ...

Core Viewpoint - President Trump's proposals to lower mortgage rates and cap credit card interest rates may not effectively improve affordability for consumers and could potentially lead to adverse economic consequences [1][2]. Mortgage Rates - Trump plans to direct representatives to purchase $200 billion of mortgage bonds to lower mortgage rates [2]. - Following the announcement, fixed mortgage rates have decreased by 10 to 20 basis points, which could increase housing demand but also drive home prices up due to a severe housing shortage [6][7]. - The economist Mark Zandi warns that while lower rates may seem beneficial, they will not make homebuying more affordable as higher demand will lead to increased home prices [7]. Credit Card Interest Rates - Trump's proposal includes capping credit card interest rates at 10% for one year, which Zandi believes may face legal challenges and could limit credit availability for many borrowers [9]. - Zandi argues that only consumers with high credit scores would maintain their credit lines, as lenders would struggle to profitably extend credit at the proposed rate [9]. - Analysts at UBS and hedge fund manager Bill Ackman share concerns that capping credit card interest rates could negatively impact lower-income consumers and overall economic spending [10].

Core Insights - President Trump's initiative aims to prohibit large investment companies from purchasing single-family homes to improve affordability for families [1][2] - Experts express skepticism about the effectiveness of this proposal in addressing the housing affordability crisis, emphasizing that the issue is fundamentally a supply problem [11][12] Group 1: Institutional Investors and Market Dynamics - Institutional investors have been linked to rising home prices and rents, but their overall impact on homeownership opportunities remains unclear [3] - Investor activity in the single-family home market increased from 29% in June 2025 to 30% in September 2025, marking a year-over-year rise of three percentage points [3][4] - Over 90% of investor-owned single-family homes are held by small investors with fewer than 11 properties, indicating that large institutional buyers are not the primary drivers of the market [5][6] Group 2: Local Regulations and Construction Challenges - Local building restrictions have significantly contributed to the housing shortage, with research indicating a decline in construction since the 1980s due to restrictive zoning and permitting laws [7][8] - Regulatory burdens account for approximately 25% of the cost of a single-family home, equating to about $100,000 of a $400,000 house [10] Group 3: Potential Impact of Trump's Proposal - Reducing institutional investment could exert downward pressure on home prices by decreasing demand, but institutional investors only represent about 1% to 2% of total home purchases, suggesting a modest overall impact [10] - Limiting institutional activity may lead to a reduction in the single-family rental market supply, potentially increasing rental prices [10] Group 4: Broader Housing Affordability Solutions - Experts agree that addressing the housing shortage requires multiple solutions beyond just restricting institutional investors, as the affordability crisis is deeply rooted in supply issues [11][12] - The combination of regulatory burdens, land use policies, and economic factors creates a "perfect storm" that drives housing prices higher [12]

Core Viewpoint - Rocket Companies (RKT) is experiencing significant stock price appreciation due to expectations of lower mortgage rates following President Trump's announcement to purchase $200 billion in mortgage bonds, aimed at making homebuying more affordable [1][5]. Group 1: Company Overview - Rocket Companies is valued at $49 billion and operates popular personal finance brands including Rocket Mortgage, Rocket Loans, and Rocket Homes [1]. - The stock has gained over 125% in the past year and 25% in the last month, reaching a new three-year high of $23.50 [5][4]. Group 2: Market Reaction - Following the announcement of the mortgage bond purchase, Rocket shares have surged as investors anticipate increased home purchases and loan activity due to lower rates [2]. - The stock has received a 100% "Buy" opinion from Barchart, indicating strong market confidence [5]. Group 3: Technical Indicators - Rocket Companies has shown consistent price appreciation, with a recent gain of 17.43% since a new "Buy" signal was issued on November 26 [3]. - The Relative Strength Index (RSI) is currently at 76.43, indicating strong momentum, with a technical support level around $22.71 [7].

Core Viewpoint - The rising cost of housing in the U.S. has become a significant issue, with home prices increasing over 150% since 2019 and mortgage rates rising from approximately 3.7% to 6.2%, making home ownership unattainable for many Americans, particularly first-time buyers [2][3] Group 1: Housing Affordability Crisis - The affordability crisis is primarily driven by skyrocketing home prices and increasing mortgage rates, which have made home ownership an aspiration for three in four U.S. households [2][3] - President Trump has proposed banning institutional investors from purchasing single-family homes, which he believes are driving up prices and making home ownership less accessible [3][4] - The initiative has garnered bipartisan support, with various political figures acknowledging the negative impact of treating housing as a corporate strategy [3][4] Group 2: Institutional Investors' Role - Critics argue that institutional investors are reducing the inventory of homes available for sale, thereby driving up prices for regular buyers [4][5] - However, experts like Ed Pinto contend that institutional buyers are not the cause of rising prices but rather a symptom of deeper issues, such as restrictive zoning laws and a lack of new construction [5][14] - Institutional investors have historically played a role in stabilizing the housing market during downturns, such as the Great Financial Crisis and the post-pandemic recovery [7][13] Group 3: Market Dynamics and Misconceptions - Data shows that institutional investors account for only 1% of the total single-family housing stock, with small, mom-and-pop businesses dominating the market [9][14] - Recent trends indicate that large institutional investors have been net sellers rather than net buyers, contradicting claims that they are monopolizing the market [10][13] - Pinto's research highlights that there is no correlation between institutional ownership levels and housing price increases in various markets, suggesting that other factors are at play [13][14] Group 4: Potential Consequences of Policy Changes - Banning institutional investors from acquiring homes could have unintended negative consequences, such as reducing the availability of rental options for low-income families and hindering the repair and renovation of distressed properties [15] - The absence of institutional investors during economic downturns could exacerbate housing market volatility and limit options for aspiring homebuyers [15]

Core Viewpoint - Builders FirstSource (BLDR) shares experienced a significant rally of 12% in the last trading session, closing at $124.66, driven by notable trading volume and investor optimism regarding housing affordability in the U.S. [1][2] Company Performance - Builders FirstSource is projected to report quarterly earnings of $1.31 per share, reflecting a year-over-year decline of 43.3%. Revenue expectations stand at $3.44 billion, which is a decrease of 9.9% compared to the same quarter last year [3]. - The consensus EPS estimate for Builders FirstSource has remained unchanged over the past 30 days, indicating a lack of upward revisions in earnings estimates, which typically correlates with stock price movements [4]. Industry Context - Builders FirstSource operates within the Zacks Building Products - Retail industry, which includes other companies such as Tecnoglass (TGLS). Tecnoglass closed the last trading session up by 4.9% at $53.73, although it has returned -4.2% over the past month [5]. - Tecnoglass is expected to report an EPS of $0.86, representing an 18.1% decline from the previous year, and currently holds a Zacks Rank of 5 (Strong Sell) [6].

Core Viewpoint - Century Communities (CCS) shares experienced a significant rally of 10.9%, closing at $68.33, driven by notable trading volume and renewed optimism regarding housing affordability in the U.S. [1][2] Company Performance - CCS is projected to report quarterly earnings of $1.39 per share, reflecting a year-over-year decline of 60.2%, with expected revenues of $1.07 billion, down 16.2% from the previous year [3] - The consensus EPS estimate for CCS has remained unchanged over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [4] Industry Context - CCS operates within the Zacks Building Products - Home Builders industry, where another company, Meritage Homes (MTH), also saw a significant increase of 10.4% in its stock price, closing at $75.45 [5] - Meritage is expected to report an EPS of $1.57, which represents a 66.7% decline from the previous year, and currently holds a Zacks Rank of 4 (Sell) [6]

Group 1 - TopBuild (BLD) shares increased by 5.6% to close at $465.73, supported by higher trading volume compared to normal sessions, contrasting with a 0.7% loss over the past four weeks [1] - The stock's rise is attributed to optimism regarding housing affordability improvements in the U.S., following a meeting between U.S. Commerce Secretary Howard Lutnick and major homebuilding executives, highlighting the administration's efforts to address housing concerns [2] - TopBuild, as an installer and distributor of insulation and building products, is closely linked to new housing starts and renovation volumes, which is expected to positively influence investor sentiment and stock performance [2] Group 2 - TopBuild is projected to report quarterly earnings of $4.36 per share, reflecting a year-over-year decline of 15%, while revenues are anticipated to reach $1.48 billion, marking a 12.9% increase from the previous year [3] - The consensus EPS estimate for TopBuild has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - TopBuild holds a Zacks Rank of 3 (Hold), while another company in the same industry, Crawford & Company B, has a Zacks Rank of 4 (Sell) [5]

Core Insights - The housing market is facing a significant supply issue, with Federal Reserve Chair Jerome Powell highlighting the ongoing shortage of housing and the challenges in zoning land in desirable areas [1] - Institutional investors have played a notable role in the housing market, owning 3.4% of U.S. single-family homes, with larger players holding a smaller percentage [2] - The surge in institutional buyers from 2006 to 2014 contributed to a 58% increase in real house price growth and a 75% decline in homeownership rates [1] Market Reactions - The announcement regarding institutional investors' activities led to a decline in shares of major firms, including Blackstone, which fell by 5.6%, and single-family rental REITs like American Homes 4 Rent and Invitation Homes, which dropped by 4.3% and 6.0% respectively [3] Policy Implications - Former President Trump has proposed banning large institutional investors from purchasing single-family homes, citing the impact on affordability and the American Dream for younger Americans [4] - A Zillow report estimates a shortage of 4.7 million homes in the U.S., exacerbating the housing affordability crisis [5] Investment Opportunities - Despite challenges, real estate remains an attractive long-term investment for both institutional and ordinary investors, providing passive income and a hedge against inflation [6] - New crowdfunding platforms allow everyday Americans to invest in real estate with minimal capital, enabling access to income-generating properties without the burdens of traditional ownership [7][9] - Platforms like Homeshares and Lightstone DIRECT offer accredited investors opportunities to invest in diversified real estate portfolios with varying minimum investments [20][15]