A pullback in mortgage rates has helped boost homebuilder stocks this year after a dismal 2018, when the U.S. housing market slowed under the weight of higher borrowing costs, rising prices and a thin supply of homes for sale.
Investors are betting that the decline in the average rate for a 30-year mortgage will help more Americans become owners this spring homebuying season. Still, some analysts and economists say high prices remain a significant hurdle for would-be buyers this year.
“Spring will not be as strong as last year, in part because spring last year was pretty strong, but also because homebuilders are trying to adjust price for a more cautious consumer who is concerned about price and competing with additional inventory,” said Carl Reichardt, managing director and homebuilding analyst at BTIG. Read the full story.