Homebuilders slide amid downgrades, weak data


The homebuilders are under pressure in early action amid another set of downgrades for individual names (Toll Bros., Pulte, Lyons today), and another slowdown in mortgage applications.

The MBA Mortgage Application Index fell 2.1% last week, with the Purchase Index off 1% on the week and 17% from a year ago.

Reporting on Credit Suisse's latest monthly agent survey, CNBC's Diana Olick says homebuyer traffic is falling and demand is "underwhelming," but the respondents cite higher rates and home prices, not the weather.

XHB -1.3%, ITB -1.7%.

Individual names: Hovnanian (HOV -1%), Lennar (LEN -1.2%) D.R. Horton (DHI -1.3%), Ryland (RYL -1.5%), KB Home (KBH -1.9%), Standard Pacific (SPF -1.5%), MDC Holdings (MDC -1.9%).

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Comments (3)
  • fuzzymc
    , contributor
    Comments (198) | Send Message
     
    Why are home builders lumped together? Low end houses are much more affected by interest rates and mortgage qualification than high end!
    12 Mar 2014, 11:06 AM Reply Like
  • convoluted
    , contributor
    Comments (2438) | Send Message
     
    How many times have I said to short ITB at 25? This time around I did a 'triple lindy' at 26. There are moments in your life when the stars align, and all is right in the cosmos. Look at the charts for the last 700 years-this is a broken record that repeats and repeats.
    12 Mar 2014, 02:50 PM Reply Like
  • Unbalanced sheet
    , contributor
    Comments (4) | Send Message
     
    The last 700 Years!?
    12 Mar 2014, 04:56 PM Reply Like
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