Key Takeaways
- U.S. homebuilder stocks gained Friday, while much of the broader market declined in the wake of the Trump administration’s announcement of new tariffs.
- The move higher came as Treasury yields and mortgage rates fell, which could help homebuilders by stimulating demand.
- Some real-estate companies could see a relatively modest impact from the tariffs and benefit if lower rates can help “unlock the housing market,” Citi analysts said.
Shares of several U.S. homebuilders rose Friday—in a reversal from a sharp selloff a day earlier—as Treasury yields and mortgage rates fell.
D.R. Horton (DHI), PulteGroup (PHM), and NVR (NVR) shares were among the top gainers in the S&P 500 Friday. Others including Lennar (LEN), Toll Brothers (TOL), Taylor Morrison Home (TMHC), KB Home (KBH), and Meritage Homes (MTH) also made gains, even while much of the broader market declined in the wake of the Trump administration’s announcement of sweeping new tariffs. The S&P 500 lost 6%. (Read Investopedia’s live coverage of today’s market action here.)
The move higher for homebuilder stocks came as Treasury yields and mortgage rates dropped, which could benefit homebuilders by stimulating demand. The 10-year Treasury yield, which affects borrowing costs on a wide variety of loans including mortgages, slid to 4%. It fell as low as 3.86% earlier, its lowest level since October.
Citi analysts said Friday that some real-estate companies, including online brokers such as Redfin (RDFN), could see a relatively modest impact from the new tariff environment and benefit if lower rates can help “unlock the housing market.” However, the analysts said they still expect a net negative impact to the housing market.
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