Homebuilders

The homebuilder saw profits grow for the fourth straight quarter, even as the number of new orders decreased.

Sales of new US homes ended 2024 on a high note in December as customers took advantage of incentives from builders, leading to a second straight year of increased purchases.  

Mortgage applications for newly constructed homes continued to increase on a year-over-year basis, as existing home listings remain constrained.

A gauge of the outlook for home purchases over the next six months dropped 6 points to 60, the first decline since June, according to the NAHB and Wells Fargo.

Single-family starts, which account for most new construction, climbed 3.3% to a 1.05 million annualized rate, also the strongest since February 2024.

The U.S. will see between 3,000 to 4,000 such organizations begin to form in 2025, representing a jump from the year-end 2024 total.

The leading homebuilder trade group was joined by a consortium of state attorneys' general in the filing, alleging higher costs to both its members and potential buyers of new units.

The manufactured home loan lender, a unit of Berkshire Hathaway subsidiary Clayton Homes, was accused of ignoring red flags that sent many borrowers into bankruptcy, default and ultimately out of their homes.

Sales of new single-family homes increased 5.9% last month to a 664,000 annualized rate, in line with the median estimate of economists who expected 669,000.

The residential market is expected to face challenges from stubbornly high mortgage rates and limited supply in 2025, particularly after Fed Chair Jerome Powell's comments on Wednesday indicating fewer rate cuts are coming.