Homebuilders Slide After March Sales Miss, D.R. Horton Downgrade
(Bloomberg) -- Homebuilder stocks are slipping after sales of previously owned U.S. homes fell more than forecast in March and KBW cut its rating on D.R. Home sales declined for a fourth time in five months, even with lower mortgage rates, wage gains and slower home-price appreciation. The S&P Supercomposite Homebuilding Index fell as much as 1.6 percent Monday, its biggest intraday decline since March 28, led by William Lyon Homes, M/I Homes Inc. and Cavco Industries Inc. “Existing home sales cooled in March after an explosive rebound in February,” Amherst Pierpont Securities chief economist Stephen Stanley wrote in a note. He added that “March might be the closest approximation we have seen in a while to the true underlying sales pace,” after February’s bounce back from two months that were affected by higher mortgage rates, weather disruptions, and interruptions that may have been caused by the federal government’s partial shutdown.