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☆ June home sales drop to the slowest pace in 14 years as short supply chokes the market
▼ + stars: | 2023-07-20 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

Sales are unlikely to recover any time soon, as mortgage rates weigh heavy on affordability. Mortgage rates hung in the mid 6% range during that time and then shot up over 7% at the very end of May. The higher end of the market, however, appears to be recovering. While sales were down across all price points, they were down least at the higher end. Sales are unlikely to rebound soon in the existing home market, but sales of newly built homes are reaping the benefits.

Persons: Lawrence Yun, Yun, DR Horton, Donald Horton Organizations: National Association of Realtors, Realtors

☆ Investors should avoid this stock that just hit an all-time high, Josh Brown says
▼ + stars: | 2023-07-20 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

A red-hot homebuilder stock just flashed a warning sign for investors, according to Ritholtz Wealth Management CEO Josh Brown. Horton blew away expectations for its fiscal third quarter Thursday morning, reporting $3.90 in earnings per share on $9.73 billion of revenue. The stock rose sharply at the open and set a new all-time high at $132.30, but then quickly reversed course and fell into the red for the day. Horton stock reversed course during Thursday's session. Brown said the reversal appears to be a sign D.R.

Persons: Josh Brown, D.R, Horton, Refinitiv, Brown, you've Organizations: Ritholtz Wealth Locations: Horton

☆ Vistry flags tough housing market, reiterates profit forecast
▼ + stars: | 2023-07-20 | by ( ) www.reuters.com time to read: +2 min

July 20 (Reuters) - British homebuilder Vistry Group (VTYV.L) on Thursday joined its bigger rivals in flagging an intensifying slowdown in the housing market but retained its annual profit forecast, reflecting resilience in its key affordable homes business. The FTSE 250 (.FTMC) firm, which works with local authorities and housing associations to build affordable homes, expects adjusted pre-tax profit for the year ending Dec. 31 to be in excess of 450 million pounds. Vistry, which is typically better insulated against housing market shocks as demand for affordable housing is high, said it was able to mitigate the slowdown in the market through bulk transactions in both its Partnerships and Housebuilding businesses. However, the group said its Housebuilding business, which is similar to its rivals' operations, had faced "more challenging market conditions" in the half-year period with the broader macro-economic challenges particularly impacting first-time buyers. Reporting by Suban Abdulla in London and Aby Jose Koilparambil in Bengaluru; Editing by Sonia Cheema and Kate HoltonOur Standards: The Thomson Reuters Trust Principles.

Persons: Greg Fitzgerald, Suban Abdulla, Aby Jose Koilparambil, Sonia Cheema, Kate Holton Organizations: Vistry, Thursday, FTSE, Bank of England, British, Countryside, Thomson Locations: British, London, Bengaluru

☆ Mortgage rates drop, backing off 7%
▼ + stars: | 2023-07-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —US mortgage rates dipped this week, backing off 7% as inflation slows ahead of the Federal Reserve’s rate decision meeting next week. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. “As inflation slows, mortgage rates decreased this week,” said Sam Khater, Freddie Mac’s chief economist. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. But as a result, Jones said, mortgage rates are likely to remain elevated for the time being.

Persons: Freddie Mac, ”, Sam Khater, Freddie Mac’s, “, Hannah Jones, Jones, ‘ Organizations: DC CNN, ”, Treasury Locations: Washington, today’s, ’

☆ The last, best hope for homebuyers
▼ + stars: | 2023-07-19 | by ( James Rodriguez | ) www.businessinsider.com time to read: +12 min

But there may be one last hope for salvation for these hard-pressed homebuyers: brand-spanking new houses. Many builders are even dangling perks like cheaper loans or other discounts to ease the pain of higher mortgage rates. Homebuilding is typically a cyclical industry, following the ups and downs of the broader housing market. Of course, people will always move for reasons that have nothing to do with mortgage rates. Even if buyers get some relief from new housing construction, builders are still a long way off from bridging the housing shortfall.

Persons: Richard de Chazal, William Blair, de Chazal, Realtor.com, bottoming, John Burns, Black Knight, Mike Simonsen, Simonsen, bode, it's, Sheryl Palmer, Taylor Morrison, Palmer, Cristian deRitis, Jay Parsons, Matthew Walsh, Walsh, Freddie Mac, Lawrence Yun, They're, production's, James Rodriguez Organizations: Federal Reserve, National Association of Realtors, John Burns Research, Consulting, Altos Research, National Association of Homebuilders, Builders, Moody's

☆ Homebuilder sentiment rises again in July, but builders warn higher mortgage rates are hurting
▼ + stars: | 2023-07-18 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Builder sentiment in the market for single-family homes rose 1 point in July to 56, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Builders say low supply in the resale market is driving demand for new construction, but higher mortgage rates and supply-side challenges continue to put pressure on the market. The average rate on the popular 30-year fixed mortgage crossed over 7% briefly in May and then again at the end of June. Those higher rates are straining affordability in the market, where prices for existing homes are rising yet again. Despite higher mortgage rates, however, builders are using fewer incentives.

Persons: Robert Dietz, NAHB's Organizations: National Association of Home Builders, Federal Reserve, . Census Locations: Wells Fargo

☆ Homebuilder sentiment rises in July
▼ + stars: | 2023-07-18 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHomebuilder sentiment rises in JulyCNBC's Rick Santelli and Diana Olick report on the latest economic and housing data.

Persons: Rick Santelli, Diana Olick

☆ Morning Bid: Retail, housing and banks test jaunty July
▼ + stars: | 2023-07-18 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in U.S. and global markets from Mike DolanThe benign July investment environment gets tested on Tuesday by updates on U.S. retail sales and housing while the corporate earnings season kicks back into gear with another sweep of bank reports. Consensus forecasts are for a modest rise in retail sales and industrial output last month, while the NAHB homebuilder index is expected to have ticked higher in July to underline the recent housing market recovery more broadly. U.S. stock futures were flat going into the open and 10-year Treasury yields ticked down to their lowest level of the month so far. Crude oil prices tried to find their footing after Monday's sharp drop and continue to sustain year-on-year losses of more than 25%. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Mike Dolan, Wall, HSI, Evergrande, Goldman Sachs, Janet Yellen, Morgan Stanley, Lockheed Martin, Charles Schwab, JB Hunt, Michael Barr, Christina Fincher Organizations: New York Federal, Bank of America, Bank of New, Mellon, Novartis, Sandoz, Bank of New York Mellon, Lockheed, PNC Financial, Synchrony, JB, Federal, Reuters Graphics Reuters, Reuters, Thomson Locations: U.S, Hong Kong, Treasuries, Canada

☆ These companies reporting next week have a history of beating earnings estimates
▼ + stars: | 2023-07-14 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

The new corporate earnings season revs up next week, and some stocks could do well on the back of their reports. The regional bank has beat earnings expectations in 70% of its past reports and typically advances 1.7% on the back of a report. Blackstone Investment firm Blackstone also made the list, with the company beating expectations 70% and 79% of the time for earnings and revenue, respectively. Horton , which is also set to report Thursday, has beat earnings expectations 76% of the time and sales forecasts 70%. The company, which reports Thursday after the bell, has beat earnings and sales expectations 87% and 83% of the time, respectively.

Persons: revs, Morgan Stanley, Goldman Sachs, they've, Wells, Jared Shaw, WAL, Blackstone, D.R, Horton D.R, — CNBC's Michael Bloom, Fred Imbert Organizations: Bank of America, Netflix, United, Investors, CNBC Pro, Investment, Western Alliance, Western Alliance Bancorp, Regional Banking, Blackstone Investment, Truland Locations: Horton, Friday's

The pan-European STOXX 600 index (.STOXX) ended 0.6% higher, extending gains to the fifth straight day, its longest winning streak in nearly three months. Rate-sensitive technology stocks (.SX8P) were the top gainers on STOXX 600, jumping 1.7%, with IT provider Softcat (SCTS.L) advancing 5.3% after Citi raised it to "buy". Also supporting STOXX 600 were miners (.SXPP) rising 1.7%, as commodity prices won support from a weaker dollar. [MET/l]A faster-than-expected slowdown in U.S. inflation reinforced bets that the Fed could end its rate hikes soon after July. Shares of Swatch (UHR.S) rose 6.9% after the watchmaker reported record growth in the first half of the year.

Persons: Barratt, Pierre Veyret, Chris Zaccarelli, Matteo Allievi, Shreyashi Sanyal, Sherry Jacob, Phillips, Janane Venkatraman, William Maclean Organizations: Federal, Citi, ActivTrades, Independent, Alliance, Swatch, Thomson Locations: Tech, U.S, Gdansk, Amruta, Bangalore

☆ European shares edge higher, but mixed data limit gains
▼ + stars: | 2023-07-13 | by ( ) www.reuters.com time to read: +1 min

July 13 (Reuters) - European shares edged higher on Thursday as U.S. inflation data fuelled hopes that the Federal Reserve was on the brink of ending its post-pandemic tightening cycle, although a raft of mixed economic data limited further upside. The pan-European STOXX 600 index (.STOXX) edged up 0.1% by 0708 GMT. Keeping a lid on risk sentiment was weak trade data from China, while on the other hand, Britain's economy contracted less than expected in May. Industrial stocks (.SXNP), which are sensitive to China-related news, were the biggest drags in the index. Reporting by Matteo Allievi in Gdansk and Amruta Khandekar in Bangalore; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

Persons: Barratt, Matteo Allievi, Sherry Jacob, Phillips Organizations: Federal, Swatch, Thomson Locations: China, Gdansk, Amruta, Bangalore

LONDON, July 13 (Reuters) - Britain's largest homebuilder Barratt Developments (BDEV.L) warned it would build far fewer homes this fiscal year as rising mortgage rates and stubborn inflation hit demand, sending its shares down more than 5% in early trading on Thursday. The FTSE 100-listed firm said it expected to build between 13,250 to 14,250 units in the year ending June 30, 2024, down from 17,206 homes the year before. Average two-year fixed mortgage rates hit a 15-year high earlier this week. Julie Palmer, partner at Begbies Traynor, said Thursday's trading update underlined the impact of rising rates on homebuyers, construction firms and other businesses linked to the housing market. High-end housebuilder Berkeley (BKGH.L) last month forecast a 20% drop in house build sales for its current fiscal year.

Persons: Barratt, Julie Palmer, Begbies Traynor, Suban Abdulla, Aby Jose Koilparambil, Sherry Jacob, Phillips, Kate Holton, Elaine Hardcastle Organizations: Thomson Locations: London, Bengaluru

☆ The 2023 stock rally is no longer about just AI and Big Tech
▼ + stars: | 2023-07-08 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Big Tech stocks led US stock gains in the first half of 2023, fueled by an explosion of interest in AI. June was the benchmark S&P 500 index's best month since October, with a 6.5% gain that was close on the heels of the FANG+ group of New York Stock Exchange-listed Big Tech companies. "But, there were signs in June that mega-cap AI equities are consolidating, and that the rally is broadening to laggards," he added. "Far from being at risk of collapsing, stocks are actually looking healthier than they did when the AI rally really kicked off." Read more: Forget FAANG and GAMMA, the 'Magnificent 7' tech stocks - including Tesla and Nvidia - now dominate the market

Persons: Minerva, Kathleen Brooks, we're, Brooks, PulteGroup, Big, Mark Haefele Organizations: Big Tech, Service, Apple, Microsoft, Nvidia, New York Stock Exchange, General Electric, Meta, UBS, Swiss, Federal Locations: Wall, Silicon

☆ A lead portfolio manager at a $205 billion asset manager explains why there's no recession ahead for the US economy — and shares 8 mid-sized stocks set to beat the market going forward
▼ + stars: | 2023-07-07 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +5 min

Diane Jaffee — lead portfolio manager at TCW, which manages $205 billion in assets — sits solidly in this latter camp. "Historically, mid-caps and small-caps outperform large caps over time, but you have to go back to a 20 year time horizon before that's true," Jaffee explained. 8 mid-cap stocks set to outperformWithin her mid-cap fund, some of Jaffee's financials holdings include insurance broker Arch Capital Group (ACGL) and private equity firm Apollo Global Management (APO). "It has a great management team that comes from JPMorgan, and they're an economic focus for Puerto Rico," Jaffee explained. Within consumer discretionary stocks, Jaffee also noted homebuilder Toll Brothers (TOL) as another top holding.

Persons: Diane Jaffee, Jaffee, Morgan Stanley, Seth Carpenter, Carpenter, that's, We've, They've, homebuilder, she's, LEN Organizations: Wall, Federal Reserve, —, Arch Capital, Apollo Global Management, Banco Popular, JPMorgan, Puerto, Darden, Medicaid outlays Locations: TCW, financials, Puerto Rican, Puerto Rico, Olive

☆ Home price appreciation tells a lot about homebuilder margin strength, says Deutsche Bank analyst
▼ + stars: | 2023-06-27 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHome price appreciation tells a lot about homebuilder margin strength, says Deutsche Bank analystJoe Ahlersmeyer, Deutsche Bank analyst, joins 'Squawk on the Street' to discuss his take on the new home sales data, how much of the gains are attributed to the housing gains shortage, and more.

Persons: Joe Ahlersmeyer Organizations: Deutsche Bank

☆ US new home sales jump in May; median house price falls
▼ + stars: | 2023-06-27 | by ( ) www.reuters.com time to read: +2 min

Economists polled by Reuters had forecast new home sales, which account for a small share of U.S. home sales, slipping to a rate of 675,000 units. New home sales are counted at the signing of a contract, making them a leading indicator of the housing market. The housing market has likely found a floor and could be even improving. Economists say the signs of revival in the housing market suggested the Federal Reserve would need to keep raising interest rates. The housing market has been the biggest causality of the U.S. central bank's fastest rate hiking cycle since the 1980s.

Persons: Freddie Mac, Lucia Mutikani, Chizu Organizations: U.S, Commerce Department, Reuters, Housing, Thomson Locations: U.S, Northeast, South, Midwest

☆ Stocks making the biggest premarket moves: Tesla, Darden Restaurants, Anheuser-Busch, Alcoa & more
▼ + stars: | 2023-06-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Darden Restaurants — The company behind Olive Garden and other restaurant chains slid nearly 4% in the premarket. Darden beat expectations of analysts polled by Refinitiv for earnings in the fiscal fourth quarter, while revenue came in line with expectations. Meanwhile, Darden's revenue guidance was higher than Wall Street forecasted. The Wall Street firm said the stock is pricing in only downside risk without the expectation for recovery. Alcoa — Shares of the aluminum company slumped 3.5% in premarket trading after Morgan Stanley downgraded Alcoa to underweight from equal weight.

Persons: Morgan Stanley, Darden, Refinitiv, FactSet, Eugene Lee, Overstock.com, discounter, Overstock, Mauricio Gutierrez, Bud Light, influencer Dylan Mulvaney, Aerosystems, —, Samantha Subin, Jesse Pound, Alex Harring Organizations: Tesla, Darden, Olive, Wall, Bed, NRG Energy, Journal, Elliott Investment Management, Anheuser, Busch Inbev, Deutsche Bank, Alcoa —, Alcoa, Refinitiv, Revenue, Boeing Locations: Austin , Texas, Kansas

☆ It's a great time to be a public homebuilder, says UBS' John Lovallo
▼ + stars: | 2023-06-22 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIt's a great time to be a public homebuilder, says UBS' John LovalloUBS Homebuilders & Building Products Analyst John Lovallo joins 'Power Lunch' to discuss UBS raising its price target on KB Home to $65 from $48 and the state of home builders.

Persons: John Lovallo Organizations: UBS, John Lovallo UBS Homebuilders, Building

☆ Harvard researchers share 7 charts that show the struggles of buying and renting a home in America today, and their recommendations for solving them
▼ + stars: | 2023-06-22 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

The Harvard Joint Center for Housing Studies released their State of The Nation's Housing report. Harvard Joint Center for Housing StudiesOn top of that, mortgage rates have surged from around 3.3% in early 2022 to just under 7% today. Harvard Joint Center for Housing StudiesBlame that in part on falling building rates. Harvard Joint Center for Housing Studies"The construction slowdown in 2022 raised concerns about the nation's large and ongoing housing shortfall. To boost homeownership rates among minority groups, the researchers also proposed lowering credit score minimums for mortgages and taking into consideration other indicators of creditworthiness that aren't reflected in a credit score.

Persons: it's, homeownership Organizations: Harvard Joint Center for Housing Studies, National Association of Realtors . Harvard Joint Center for Housing, Harvard Joint Center for Housing, Harvard, Center for Housing

☆ The housing market suggests that the US economy dodged the recession bullet and is poised for more growth ahead
▼ + stars: | 2023-06-22 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Recent strength in the housing market suggests the US economy may have dodged a recession, according to Carson Group. Housing starts surged nearly 22% in May while building permits also rose, indicating builders are confident about demand. "Housing historically bottomed prior to the end of a recession and has typically led the economy out of one." That's a big deal because weakness — not strength — in housing starts data has historically foreshadowed recessions. Housing starts measure the groundbreaking of a foundation and precedes sales of new homes as well as spending on home goods and appliances.

Persons: —, Sonu Varghese, They're, Varghese Organizations: Carson Group, Housing, Service

☆ London stocks open lower as inflation data deepens rate hike concerns
▼ + stars: | 2023-06-21 | by ( ) www.reuters.com time to read: +1 min

Pressured by a firm sterling , the export-oriented FTSE 100 (.FTSE) was down 0.5% at 0710 GMT. The FTSE 250 (.FTMC) mid-cap index shed 0.7%. After data showed consumer inflation was unchanged at 8.7% in May, contrary to expectations of a slight fall, traders ramped up their bets of a 50 basis point (bps) BoE rate hike on Thursday from the 25 bps hike anticipated earlier. In a testimony later in the day, Powell is poised to be questioned on the future of rate hikes by the world's most influential central bank. Reporting by Ankika Biswas in Bengaluru; Editing by Sonia CheemaOur Standards: The Thomson Reuters Trust Principles.

Persons: Jerome Powell, BoE, Powell, homebuilder, Ankika Biswas, Sonia Cheema Organizations: Bank of England, Federal, FTSE, Berkeley Group Holdings, Thomson Locations: Bengaluru

☆ UK housebuilder Berkeley flags demand woes despite annual profit jump
▼ + stars: | 2023-06-21 | by ( ) www.reuters.com time to read: +1 min

June 21 (Reuters) - Berkeley Group Holdings (BKGH.L) on Wednesday posted a near-10% jump in annual profit even as the British high-end homebuilder warned of demand concerns and tough market conditions due to elevated levels of interest rates. Berkeleys' update comes at a time strengthening prospects of further Bank of England interest rate hikes have stymied hopes of a strong recovery in the UK housing sector as lenders withdraw or reprice mortgage offerings. CEO Robert Perrins said business continued to see good levels of enquiries, but flagged concerns about the trajectory of interest rate rises. Operating across London, Birmingham and the South of England, Berkeley reported a pre-tax profit for the year ended April 30 of 604 million pounds ($772.5 million), compared with 551.5 million pounds reported a year earlier. The homebuilder had forecast a pre-tax profit of about 600 million pounds.

Persons: homebuilder, Moody's, Robert Perrins, Aby Jose Koilparambil, Suban Abdulla, Sherry Jacob, Phillips, Sohini Organizations: Berkeley Group Holdings, Bank of, Thomson Locations: Bank of England, Berkeley, London, Birmingham, England, Bengaluru

☆ Homebuyers rejoice: There are more homes coming soon to a neighborhood near you
▼ + stars: | 2023-06-20 | by ( Alcynna Lloyd | Noah Sheidlower | ) www.businessinsider.com time to read: +4 min

Housing starts — also known as new home construction — rose at the fastest monthly rate since 2016. As the Fed pauses its rate hikes, mortgage rates are trending lower and consumer sentiment is rising. Between April and May, housing starts rose by the fastest month-over-month rate since 2016. Single-family housing starts increased 18.5% to a seasonally adjusted annualized rate of 997,000 and multi-family housing starts climbed 27.1% to an annualized 634,000 pace. However, as the Fed adjusts its monetary policy and pauses its rate hikes, mortgage rates are trending lower and more homebuyers are returning to the market.

Persons: —, Alicia Huey, Robert Dietz, NAHB, bode, Dietz, it's Organizations: Housing, Service, Census Bureau, Bloomberg, Federal, Builders, National Association of homebuilders, National Association of Home Builders, Federal Reserve Locations: Wells Fargo

☆ This compact fund beats the market and provides a downside cushion in tough times
▼ + stars: | 2023-06-18 | by ( Alex Harring | ) www.cnbc.com time to read: +8 min

While now considered compact with 40 holdings, portfolio manager Andrew Choi said it has become known for its cushion when the market hits a bad patch. " The fund has returned 10.9% annually since its inception, compared with a 9.9% year gain over the same period for the broad S & P 500. PRBLX .SPX YTD mountain The fund vs. the S & P 500 'Dancing in the right places' The fund was created in 1992, about eight years after the firm itself began. He said the fund finds stocks that can provide downside cushion by looking at moats and management teams. Rolling returns over the past five years show the fund outperforming the S & P 500 and Russell 1000 about 60% of the time.

Persons: Andrew Choi, Choi, Morningstar, Todd Ahlsten, Ahlsten, Warren Buffett, Biden's, they're, Salesforce, Charles Schwab, Apple, Big, Stephen Welch, it's, Russell, sharpe, Welch Organizations: Equity Fund, firm's CIO, GOP, Semiconductor, Devices, Nvidia, Bank of America, Microsoft, Apple, Deere, Linde, Procter, Gamble, Adobe, Mastercard Locations: downturns

☆ Morgan Stanley's chief US economist now says home prices are likely to drop only 2% in 2023. Here's why she thinks the housing downturn is virtually over.
▼ + stars: | 2023-06-17 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

Morgan Stanley's Ellen Zentner says housing activity has bottomed. After a huge drop off in activity, demand is starting to stabilize. Yardeni ResearchThe pickup in activity has likely been due to housing affordability stabilizing. Zentner's view that the housing market is stabilizing is a big contributing factor to her call for a soft-landing scenario, where the US economy avoids a recession. But nevertheless, housing activity has bottomed, and that's probably the most important pillar to a soft-landing."

Persons: Morgan, Ellen Zentner, Morgan Stanley's Ellen Zentner, Zentner, that's, Goldman Sachs, Jonathan Woloshin, Suisse's Ray Farris, Ian Shepherdson, undershoots, David Rosenberg Organizations: National Association of, National Association of Homebuilders, UBS Wealth Management, Rosenberg Locations: Zentner

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