Homebuilders’ Gloom Deepens on Recession Risk, Soaring Rates
- Mortgage rates in the US surge most since 1987 to hit 5.78%
- Homebuilders index sees worst start to year on record
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Rising mortgage rates and softening housing demand are casting a shadow over homebuilding stocks, which fell for a fifth consecutive day and are on pace for their worst start to the year on record.
The S&P Supercomposite Homebuilders Index dropped 7.5% for its worst day since June 2020, as investor woes deepened with mortgage rates jumping by the most since 1987 and housing starts dropping more than expected last month. Tri Pointe Homes Inc., Century Communities Inc. and Taylor Morrison Home Corp. were among the biggest decliners, falling more than 10% each.