Homebuilders Are Booming. There Are Two Big Reasons Why

Updated 1 day ago

Homebuilders Are Booming. There Are Two Big Reasons Why

Homebuilder shares have been some of the top-performing stocks of the past year. Five big builders—including D.R. Horton, Lennar and PulteGroup—are trading near record highs, even with Friday’s rare declines.

This is probably not what investors expected when the Federal Reserve began raising interest rates last year to ice the overheated housing market. To make sense of homebuilders’ recent success, consider two big factors: more homeowners are staying in place, and lumber costs have plunged.

Source: https://www.wsj.com/livecoverage/stock-market-today-dow-jones-05-19-2023/card/homebuilders-are-booming-there-are-two-big-reasons-why-FEB22bSiBTj9E0wsvJYY?siteid=yhoof2&yptr=yahoo