Homebuilder stocks are higher today on renewed interest rate cut hopes this summer
May’s cooler-than-expected consumer price index (CPI) on a year-over-year basis is pushing bond yields lower, and the prospects of an interest rate cut in September are increasing. Homebuilding stocks — hyper sensitive to rates and the U.S. economy — are on the rise today. Here’s what it means for three sector stalwarts: D. R. Horton Inc (NYSE:DHI), PulteGroup Inc (NYSE:PHM), and Lennar Corp (NYSE:LEN). KBH Home (KBH) was covered in depth earlier this week, with a correctly identified bullish signal.
DHI is up 4.6% to trade at $146.04, but is still below its year-to-date breakeven level, and a ways off its April 1 all-time high of $165.75. However, the shares have reclaimed their once supportive 160-day moving average, and remain up 26% year-over-year.
PHM was last seen up 5.9% to trade at $117.51, on track for its best single-session gain since December. PHM is up 13% in 2024, while its 3.4% pullback this quarter is testing its 100-day moving average. The shares are within striking distance of their May 16 all-time high of $122.72.
LEN is 3.8% higher to trade at $158.07, building some separation with its year-to-date breakeven level. The shares are up 36% in the last 12 months, but have spent the last few months consolidating below their March 28 record high of $172.59.
