Will the Coronavirus Demolish These Homebuilder Stocks?
At the beginning of the year, residential homebuilders D.R. Horton (NYSE: DHI), NVR (NYSE: NVR), and PulteGroup (NYSE: PHM) were flying high. Sales figures and margins were soaring across the housing industry. The usual winter slump in buying hadn't materialized. And mortgage rates were falling, leading to optimistic projections of a pending sales boom.
Unfortunately, it didn't last.
Along came the coronavirus pandemic, and while the Fed's cut of interest rates to zero led to rock-bottom mortgage rates and a surge in interest, it looks like the decade-long housing boom may finally have turned the corner. Here's what's happening, and why it has the potential to wreck these homebuilders' fortunes.
Source Fool.com
