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Home Latest Articles Summary The housing sector is facing mounting headwinds as 30-year mortgage rates surpass 7%, significantly impacting housing affordability and demand. Homebuilder confidence and housing starts have deteriorated sharply, signaling continued sector weakness and prompting me to avoid homebuilder stocks for now. Lennar just reported quarterly results that reflect this weakness.
Gross margins at Lennar Corporation shrank to 15.8% from 17.5% year-over-year, as increased incentives are required to move inventory. The article below highlights several new data points that show the housing sector continuing to deteriorate, negatively impacting a key driver of the U.S. economy. Looking for a helping hand in the market?
Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More » Douglas Rissing/iStock via Getty Images My regular readers know I have been covering the moribund housing market for years now. This is one of many key primary economic engines in the U.S. that is sputtering right now.
And unfortunately, some 58.66K Followers Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha).
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Source: Seeking Alpha
