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Homebuilders slump after soft new homes sales print

Published 01/25/2018, 10:08 AM
© Reuters.  Homebuilders slump after soft new homes sales print
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  • December new home sales came in at a seasonally adjusted annualized rate of 625K vs. expectations for 676K. November's 733K gain was revised down to 689K. While the December pace slipped from November, it was 14.1% above the year-ago level.
  • Checking regions, sales in the South fell to 331K from 367K, and in the West to 190K from 210K. Midwest sales fell to 63K from 70K, and Northeast to 41K from 42K.
  • Rates, meanwhile, continue to head higher, with the 10-year Treasury yield up another two basis points to 2.67% - a new high for the cycle.
  • The homebuilders are sinking on the news. The iShares U.S. Home Construction ETF (ITB -2.8%), Toll Brothers (TOL -3.9%), Lennar (LEN -3.4%), KB Home (KBH -4.4%), Pulte (PHM -3.9%), D.R. Horton (DHI -3%), Beazer (BZH -2.7%), NVR (NVR -5.4%), Hovnanian (HOV -2.6%)
  • Now read: KB Home 2017 Q4 - Results - Earnings Call Slides


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