The homebuilder pressure makes total sense given the UST curve movement. Forestar Group is feeling this squeeze as land development timelines extend when builders pull back on lot acquisitions. The disconnect between Fed easing and rate sensitive sectors shows how much the market is pricing in future supply concerns. Small homebuilders and land devlopers like FOR are in a tough spot with elevated financing costs eating into already thin margins.
Downbeat color from some major builders on calls, and we are heading into the slower period with the longer end of the UST curve and mortgages not cooperating. The supply problem also might be met by shaken buyer confidence to go with it.
The homebuilder pressure makes total sense given the UST curve movement. Forestar Group is feeling this squeeze as land development timelines extend when builders pull back on lot acquisitions. The disconnect between Fed easing and rate sensitive sectors shows how much the market is pricing in future supply concerns. Small homebuilders and land devlopers like FOR are in a tough spot with elevated financing costs eating into already thin margins.
Downbeat color from some major builders on calls, and we are heading into the slower period with the longer end of the UST curve and mortgages not cooperating. The supply problem also might be met by shaken buyer confidence to go with it.