Lower rates combine with Q4 results to boost homebuilders


The homebuilders continue a big move higher this week as the sector reports better-than-expected results from Q4, and now has the tailwind of lower rates behind it. Off four basis points to 2.66% today, the 10-year Treasury yield has tumbled about 35 basis points in January.

A couple of upgrades has Jefferson Research raising D.R. Horton (DHI +3.5%) to a Buy and RayJay upping Pulte Group (PHM +4.5%) to Outperform.

ETFs; XHB +1.4%, ITB +2.3%

Toll Brothers (TOL +3%), NVR (NVR +3.6%), William Lyons (WLH +1.1%), Hovnanian (HOV +2.2%), Lennar (LEN +3.4%)

The New Home Company (NWHM) is up 10% from last night's IPO price of $11, but the pricing range had been expected at $15-$17 per share.

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Comments (1)
  • Kimer62
    , contributor
    Comments (269) | Send Message
     
    Plenty of room to run with housing starts not at 1M yet. average starts over time is 1.6M!
    1 Feb 2014, 10:39 AM Reply Like
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