Builder
“The fundamentals of the current housing recovery are firmly in place, supported by low inventory levels, an improving economy and positive demographic trends," said Jeffrey Mezger, president and chief executive officer, in a press release.
"Given these factors, we believe that the recent slower pace of the recovery caused by an uptick in mortgage interest rates is a temporary effect, and we expect to see steady upward demand for housing as consumers adjust to both higher rates and pricing.”
Los Angeles-based KB’s financial services segment was down year-to-year with pretax income of $2.4 million in the third quarter, up from $3.3 million or four cents per share, but its overall net income was up at $27.3 million, or 30 cents per share, compared to $3.3 million, or four cents per share.
The financial services segment’s year-ago quarter included income of $2.1 million associated with the wind down of a former mortgage banking joint venture, and the overall 3Q net income figure included an income tax benefit of $700,000, while year-ago 3Q net income for the company included an income tax benefit of $10.7 million, primarily due to the resolution of a federal income tax audit.
