Pending home sales in the U.S. dropped 7.3% in September, reaching the lowest level since 2001, driven by mortgage rates rising to 7.4%. Despite this, homebuilder stocks like Lennar and D.R. Horton surged, reflecting investor optimism that rates might be peaking and that builders can offset challenges with price cuts and incentives. Builders face margin pressure as they reduce prices to maintain sales amid high borrowing costs, with some cutting prices by 6% on average. The upcoming housing data and quarterly results, especially from D.R. Horton, will be key to assessing if the recent stock rally is sustainable.
D.R. Horton holds a market cap of $37.85 billion and Lennar $18.69 billion on Pluang as of Oct 21, 2026 20:31 WIB. Despite the article noting a surge in homebuilder stocks, both Lennar and D.R. Horton saw slight declines of 0.19% and 0.26% respectively on Pluang. Lennar's dividend yield stands at 2.54%, while D.R. Horton offers 1.33%, with typical hold times of 68 and 47 days, reflecting mixed investor sentiment amid the housing market challenges.
Warren Buffett's Berkshire Hathaway invested about $600 million in Lennar, the largest US homebuilder, despite a weakening housing market marked by rising mortgage rates and record cancellation rates. Berkshire now owns roughly 12% of Lennar, signali...
Berkshire Hathaway has significantly increased its stake in Lennar, attracted by its management and strategic shift to an asset-light model. However, Lennar faces margin pressures in Q3-26 due to declining deliveries, lower prices, and higher incenti...
