New Home sales doing well after price drop inspite of rising mortgage rates

" * Single-family homes sales increase 4.1% in April

  • Median new house price falls 8.2% year-on-year
  • Business activity rises to 13-month high in May

Shortage of homes for sale keeps new home sales strong.

Stocks of Lennar, Toll Brothers, and DHI are all doing well, but that’s hard to believe with interest rates rising. And they can’t be recession resistant. But builders can cut costs by trimming extras making them options at extra cost. In a slowing economy they can also be tough negotiators with suppliers and contract labor.

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