Why Homebuilder Stocks Are Rallying Despite High Mortgage Rates

Homebuilder stocks from DR Horton to Pulte jumped 3 to 5 percent in the past week, even as the average 30-year mortgage rate ticked up to 6.58 percent. Lucas and Luna dig into what is driving the optimism: a surge in housing starts to 1.427 million in June, persistent inventory shortages in existing homes, and builders' ability to maintain pricing power by shrinking floor plans and offering rate buydowns. They also examine a contrasting data point—the Case-Shiller index edging down for the first time in months—and explain why that dip reflects the existing-home market, not the new-home segment where builders are thriving. The conversation touches on tariff impacts on materials costs, the Federal Reserve's next moves, and whether the rally is sustainable. Plus, Lucas shares how listener support keeps this show ad-free. #HomebuilderStocks #HousingMarket #MortgageRates #DRHorton #Lennar #PulteGroup #KBHome #TollBrothers #HousingStarts #ExistingHomeSales #CaseShiller #FederalReserve #RealEstate #SupplyAndDemand #Economics #HousingEconomy #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo