Home Builders Construct a Rally on Low Rate Hopes

By

Published January 10, 2014

| FOXBusiness

The lousy December jobs report is fueling expectations that 10-year Treasury yields will hold below the 3% level.  

The 10-year yield fell to a three-week low of 2.871% Friday morning amid easing worries that the Federal Reserve would be in a hurry to wind down its bond-buying stimulus at a faster pace in the coming months.  This expectation that rates will remain low is giving home builder stocks a boost, since low 10-year yields correlate strongly with low 30-year fixed mortgage rates.  The 16 homebuilder names below are up an average of 1.9% while the broader market is flat to slightly down:

Home Builder Stocks Rally

Ticker

Company

Market Cap

Last

Change

% Chg

(MHO) M/I Homes, Inc.

$603.59

26.06

0.76

3.00%

(TMHC) Taylor Morrison Home Corp. Class A

$2,679.79

22.09

0.94

4.44%

(DHI) D.R. Horton, Inc.

$6,901.29

22.50

0.75

3.45%

(LEN) Lennar Corporation Class A

$7,432.49

39.69

1.27

3.31%

(TOL) Toll Brothers, Inc.

$6,332.55

37.11

1.09

3.03%

(KBH) KB Home

$1,699.32

18.51

0.63

3.52%

(SPF) Standard Pacific Corp.

$2,444.40

9.02

0.25

2.85%

(BZH) Beazer Homes USA, Inc.

$602.02

23.38

0.52

2.27%

(RYL) The Ryland Group, Inc.

$1,949.02

43.59

1.08

2.54%

(PHM) PulteGroup, Inc.

$7,599.86

20.31

0.52

2.63%

(MDC) M.D.C. Holdings, Inc.

$1,525.23

31.89

0.54

1.72%

(HOV) Hovnanian Enterprises, Inc.

$889.50

6.31

0.11

1.77%

(BRP) Brookfield Residential Properties

$2,779.37

23.74

0.25

1.06%

(NVR) NVR, Inc.

$4,652.64

1022.75

7.75

0.76%

(MTH) Meritage Homes Corporation

$1,693.94

46.60

-0.70

-1.48%

(TPH) TRI Pointe Homes, Inc.

$610.47

17.60

-0.84

-4.56%

 

URL

http://www.foxbusiness.com/markets/2014/01/10/home-builders-construct-rally-on-low-rate-hopes/