Home prices crack US builder foundations

U.S. home values fell roughly 3% in May on an inflation-adjusted basis, representing the 12th consecutive month of decline, according to S&P Dow Jones Indices data released on July 28.

Builder D.R. Horton on July 21 trimmed its full-year revenue forecast, while rising costs and incentives it provided to buyers facing higher interest rates weighed on its third-quarter profit margin.

In a rare turn, new residences cost less than existing ones, selling at their biggest relative discount since 1968. As a result, D.R. Horton and peers increasingly offer sweeteners while others impose discipline. Costlier mortgages are reshaping this corner of the housing market.