UK Homebuilder Stocks Extend Rally on Mortgage Rate Optimism
- Softer-than-expected inflation fuels borrowing cost hopes
- Sector has recovered about half of rate-hike cycle losses
A Persimmon housing development in Rainham, UK.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Shares of UK homebuilders extended their resurgence as the latest data on inflation in Britain fueled further hopes of declining mortgage rates and increased demand for new houses.
The Bloomberg UK Homebuilder Index rose as much as 2.3% Wednesday and headed for the highest close since March 2022, with gains for stocks including Persimmon Plc and Barratt Developments Plc. The move came as statistics showed UK prices increased by less than economists expected last month, prompting traders to bring forward bets on the pace of interest rate cuts by the Bank of England.