- Homebuilders and timberland REITs are bucking the downturn in the broader U.S. stock market.
- The iShares Dow Jones US Home Construction REIT rises 0.8% in midday trading vs. the S&P 500's 2% drop.
- With mortgage rates pulling back--the 30-year FRM averaged 4.75% for the week ending today, down six basis points W/W--homebuilders are rising and with that lumber producers are also getting a boost.
- Housing affordability concerns have been weighing on homebuilder stocks, especially since September, as mortgage rates and home prices continued their upward march.
- As homebuilders report their fiscal Q4 earnings, though, many have shown average selling prices falling from the previous quarter.
- As for individual stocks in the homebuilder universe, Hovnanian Enterprises (HOV +7.7%) rose the most on better-than-expected Q4 earnings; also on the rise, KBHome (KBH +2.7%); PulteGroup (PHM +2.7%) (after boosting its dividend); Lennar (LEN +1.9%), TRI Pointe Homes (TPH +3.4%), NVR Inc . (NVR +1.7%), D.R. Horton (DHI +0.8%).
- Timberland REITs: Weyerhaeuser (WY +2.6%), Catchmark Timber Trust (CTT +3.7%), Rayonier (RYN +1.1%), and PotlatchDeltic (PCH +3.2%).
- Previously: PulteGroup declares $0.11 dividend (Dec. 6)
- Previously: Hovnanian +9.1% after Q4 beats (Dec. 6)
- Now read: Lumber Halves In Value - Weyerhaeuser Revisited
Original article