Economics
Hard-Hit Homebuilders Soar Most Since April 2020 on CPI Data
- D.R. Horton, Lennar among companies that jumped on Thursday
- Consumer-price data sends yields lower, lifting the sector
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D.R. Horton Inc., Lennar Corp. and other homebuilder companies’ shares staged the biggest rally in more than two years as a slowdown in the pace of inflation fueled bets that the Federal Reserve will start dialing back the pace of its interest-rate hikes.
The S&P Supercomposite Homebuilding Index surged 12%, the most since April 2020, after a smaller-than-expected rise in consumer prices last month ramped up hopes that the central bank’s aggressive monetary policy tightening is reining in inflation. That sent Treasury yields tumbling, promising to pull mortgage rates back from the steep jump that’s weighed on the real estate industry.