From Nasdaq: 2024-06-30 13:40:37

Housing stocks, including DR Horton and Pulte Group, have seen a modest 2% rise this year compared to the S&P 500’s 16% gain. The U.S. housing market is cooling with new home sales down 11.3% in May, impacted by higher mortgage rates. Existing home sales also fell, reflecting low inventory and high prices.

PHM stock has fluctuated with gains of 145% since January 2021 but underperformed the S&P 500 in 2022. The Trefis High Quality Portfolio consistently outperformed the S&P 500, offering better returns with less risk. Uncertainty looms for PHM in 2022 as the macroeconomic environment remains unpredictable.

Despite near-term uncertainties, the U.S. faces a housing supply shortage, providing visibility for major housing players like PulteGroup and DR Horton. The Federal Reserve may cut interest rates, lowering mortgage rates and stimulating demand. Softening supply chain constraints and price corrections may aid home builders in the long run.



Read more at Nasdaq: How Will PulteGroup & Homebuilder Stocks Navigate A Softening Housing Market?