By Spencer Jakab | The Wall Street Journal
When the Federal Reserve showed itself to be a taper tiger last week, one of the sharpest reactions came from homebuilding stocks. For example, KB Home KBH -3.52% and Lennar Corp., LEN -1.77% which both report quarterly earnings Tuesday, leapt by 9.6% and 6.6% in the last two hours of the trading session, respectively.
Lower rates for longer clearly are positive for companies that sell people the most expensive purchase of their lives on credit. Even so, there are plenty of other positive factors for homebuilders, from rising prices to increasingly compelling demographics.
If you’d like to discuss real estate matters, contact Rose Law Group founder Jordan Rose, jrose@roselawgroup.com
