Leading homebuilders collectively reported quarterly earnings that were on the upside over the past week, with the industry maintaining much of its momentum in an otherwise sluggish purchase market.
As sales for existing homes slowed in an environment marked by higher rates and limited inventory over the past several months, builders benefited, consistently finishing in the black as aspiring buyers considered new construction options. The trend continued in the most recent quarter based on earnings data.
Recent indicators raise some questions about subsequent earnings, though, with single-family housing starts and homebuilder sentiment both recently declining. On Wednesday, the government also reported new-home sales dropping to a seven-month low.
With expectations of lower rates coming in the second half of the year, the outlook for the homebuilding industry still looks promising, at least in the eyes of investors. Builder stocks rallied in mid July following recent inflation and jobs reports. The S&P Composite Homebuilding index is also up by almost 22% since July 1.
The following are some key earnings numbers from some public homebuilders.
