Homebuilder Stocks Slide as Housing Starts Hit 2026 Lows

Homebuilder stocks have taken a sharp hit over the past week, with the S&P Homebuilders ETF down 3.6% and major builders like D.R. Horton and Lennar falling 4-5%. Meanwhile, housing starts dropped to just 1.177 million in May, the lowest reading since early 2024. On this episode of The Housing Economy, Lucas and Luna dive into the disconnect: why are builders scaling back when mortgage rates have edged down to 6.43% and median home prices are easing? They explore the factors behind the pullback—from softening demand to builder caution on inventory—and what it signals for the rest of 2026. With the Fed holding rates steady and the labor market cooling, this episode connects the dots between builder sentiment, interest rates, and what homebuyers should expect this summer. #HousingStarts #HomebuilderStocks #MortgageRates #D.R.Horton #Lennar #PulteGroup #TollBrothers #XHB #ITB #HousingEconomy #RealEstate #HomePrices #FedPolicy #BuilderSentiment #Economics #FexingoBusiness #BusinessPodcast #MarketAnalysis Keep every episode free: buymeacoffee.com/fexingo