Homebuilders Crank Up Production in September
Homebuilding stocks are on the fly in early trading on Wednesday after reports showed that new-home construction boomed in the September. Building permit rose to 894 thousand, compared to 810 thousand expected, and housing starts rose 872 thousand compared to 770 thousand expected. This was a 15 percent jump and the largest gain since July of 2008.
The huge jump in housing starts could be a sign that record low mortgage rates finally sparked meaningful buying interest and homebuilders are responding with more production.
Toll Brother (NYSE: TOL) is higher by 1.4 percent pre-market. PulteGroup (NYSE: PHM) is up 1.75 percent, and Lennar is higher by 1.5 percent early on Wednesday. Today’s gains add to the massive year-to-date returns for homebuilders.
The huge jump in housing starts could be a sign that record low mortgage rates finally sparked meaningful buying interest and homebuilders are responding with more production.
Toll Brother (NYSE: TOL) is higher by 1.4 percent pre-market. PulteGroup (NYSE: PHM) is up 1.75 percent, and Lennar is higher by 1.5 percent early on Wednesday. Today’s gains add to the massive year-to-date returns for homebuilders.