Harris Has a Plan to Raise Homeownership. Builder Stocks Rejoice
- VP program includes down-payment assistance, home construction
- Rate-cut bets also help homebuilders crush S&P 500 since July
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Homebuilding stocks are on a tear with the Federal Reserve expected to start cutting interest rates in a matter of weeks. And the group is catching an additional tailwind from Vice President Kamala Harris’ plans to support the US housing market if she wins the presidential election in November.
Since the start of the third quarter, homebuilders are the fifth-best performing group out of 158 in the S&P 1500 Composite index, rising 20% to trade near an all-time high. Meanwhile, DR Horton Inc. is the third best performing stock in the S&P 500 Index over that time after soaring 31% in two months, while rival Lennar Corp. is 45th with a 19% gain. For the year, homebuilder shares are up 21% compared with a 16% rise in the S&P 500.