“Sales have clearly been impacted by rising interest rates,” Stuart Miller, Lennar’s executive chairman, said in the company’s earnings release. Miller added that “there remains a significant national shortage of housing, especially workforce housing, and demand remains strong.”
Lennar also reported that orders for new homes fell 12% from a year ago and that it is trying to “navigate the rebalance between price and interest rates.”
KB Home chairman and CEO Jeffrey Mezger said in Wednesday’s earnings report that “the combination of rising mortgage interest rates, ongoing inflation and other macro concerns has caused many prospective buyers to pause on their homebuying decision.”
Shares of KB Home fell 5% Thursday following its earnings report. Lennar rose 2%. But both stocks have plunged this year along with other builders. Lennar’s stock is down 32% in 2022 while KB Home’s shares have plummeted 40%.