Why Homebuilders Are Defying the Consumer Sentiment Crash

Consumer sentiment hit a record low in May 2026, yet homebuilder stocks like D.R. Horton, Lennar, and PulteGroup are up 4-6% in the last five days. Lucas and Luna unpack the disconnect. They look at the Case-Shiller index still climbing to 332.1, while mortgage rates just ticked up to 6.51%. The twist: builders are pivoting to smaller, more affordable homes and using rate buydowns to keep buyers in the game. But with housing starts falling and permits rising, is the market gearing up for a shift? Plus, a surprising data point from the latest earnings calls: average selling prices are dropping while margins are holding steady. That tells you something about input costs. And a quick note on how listener support keeps this show ad-free. #HomebuilderStocks #ConsumerSentiment #MortgageRates #CaseShillerIndex #HousingStarts #BuildingPermits #D.R.Horton #Lennar #PulteGroup #AffordableHousing #RateBuydowns #HousingMarket #Economics #FexingoBusiness #BusinessPodcast #RealEstate #HomePrices #Inflation Keep every episode free: buymeacoffee.com/fexingo