US homebuilders hit 18-month low as hot CPI lifts rate-hike bets
XLY•The PHLX Housing Sector Index fell 2.1% to its lowest level since April 2025 as hotter US CPI fueled rate-hike bets. D.R. Horton fell 2.9%, while 30-year mortgage rates rose to 7.50% last week, their highest since November 2023.
1. Builders fall on rate concerns
US homebuilder shares fell as hotter CPI fueled rate-hike bets, raising concerns about mortgage rates and housing affordability. The PHLX Housing Sector Index dropped 2.1% to its lowest since April 2025. D.R. Horton fell 2.9%, Lennar 3.36%, PulteGroup 3.2% and Toll Brothers 2.90%.
2. Mortgage rates reach high
Thirty-year mortgage rates rose to 7.50% last week, their highest since November 2023. Including the session’s moves, Lennar, D.R. Horton, PulteGroup and Toll Brothers were down more than 29%, 8%, 7% and 4% year to date, respectively, compared with a decline of more than 2% in the housing index.
