By Scott Kanowsky
Investing.com -- Shares in DR Horton Inc (NYSE:DHI) moved higher on Tuesday after the U.S. homebuilder posted better-than-expected first-quarter income despite a downturn in net sales.
Net income attributable to shareholders was $958.7 million, or $2.76 per share, during the three months to December 31. This was a decrease of 13% compared to the prior fiscal year, but above Bloomberg consensus estimates of $2.25.
Net sales orders during the period dropped by 38% year-on-year to 13,382 homes and by 40% in value to $4.9 billion, as customers faced significant jumps in mortgage interest rates and broader economic uncertainty.
In October, interest rates on the most popular type of home loan in the U.S. touched their highest level since 2001. But data has shown that mortgage rates have since begun to ease as investors eye a potential slowdown in the Federal Reserve's recent monetary tightening cycle.
In a statement, chairman Donald Horton said the group is confident that homebuyer demand will stay resilient.
“While these pressures may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable," Horton said.