KB Home cancellation rate rises along with interest rates

|About: KB Home (KBH)|By:, SA News Editor

1,736 net orders in Q3 compares to 1,900 a year ago as company focuses on margins, rather than volume; the value of net orders rose 7% Y/Y. The cancellation rate of 33% compares to 27% in Q2, 29% a year ago. Backlogs off 3% Y/Y by homes, up 9% by value.

Home deliveries in Q3 up 6% Y/Y; average selling price of $299,100 up 22%.

"We believe that the recent slower pace of the recovery caused by an uptick in mortgage interest rates is a temporary effect."

Q3 results.

KBH +1.3%.

Earlier: Lennar Q3 results.