Homebuilder D.R. Horton sees weaker Q1 as high mortgage rates cool demand
© Reuters. FILE PHOTO: A house under construction is seen at Hawthorne Estates by D. R. Horton in Medford, New Jersey, U.S., May 23, 2022. REUTERS/Andrew Kelly/File Photo
With current 30-year fixed mortgage rates nearing 8% and home prices continuing to surge due to a shortage of units for sale, many have deferred their home buying plans. Shrinking housing demand has forced homebuilders to increase incentives such as mortgage rate buydowns, especially for entry-level buyers, and offer lower price points, among others.
The Arlington, Texas based builder expects homes sold in fiscal 2024 in the range of 86,000 to 89,000 units, higher than 82,917 a year earlier, helped by the incentives.Prices have shot up in the last two years as a majority of homeowners with lower fixed mortgage rates are unwilling to re-sell and acquire a new house at a higher interest rate.
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