Housing-related stocks plunge despite stable home prices as transaction volumes freeze amid high mortgage rates.

Housing-related stocks have sharply declined even though home prices in major metros remain stable, highlighting a freeze in transaction volumes rather than prices. High mortgage rates, driven by a 10-year Treasury yield around 4.4%, are suppressing home sales and consumer sentiment remains low, deepening challenges for suppliers to the housing market. Companies like Whirlpool and Lennar report significant revenue drops and margin compression, while others like Pool Corporation and Home Depot show mixed resilience. The sector's recovery depends on mortgage rates easing and home sales volume increasing, otherwise suppliers will remain under pressure despite the S&P 500's gains.