Homebuilders Warn of Deteriorating Conditions as Mortgage Rates Top 7%
KBH is trading near its 52-week low of $44.025 (3.4% above the low).
Summary
KB Home and Lennar both flagged weakening housing conditions in their Q3 reports, with mortgage rates above 7% and management citing deterioration since June. KB Home posted Q3 revenue of $1.297B and EPS of $1.05, while Lennar reported $8.05B revenue and EPS of $1.19. Both builders are cutting construction times and leaning on incentives to sustain volume. Lennar points to data center labor demand, while KB Home flags fuel, tariff and inflation pressures. This follows KB Home's Q3 delivery decline reported on Sept 22, but adds Lennar's results and specific operational metrics. The stocks are trading near 52-week lows, reflecting the broader slowdown.
At the time of this announcement, KBH was trading at $45.50 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $44.03 to $67.57. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.