D.R. Horton stock sinks to lead the S&P 500's losers as rising Treasury yields weigh on home builders

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Shares of D.R. Horton Inc. (DHI) sank 5.8% in afternoon trading Friday, enough to pace the S&P 500’s decliners, as the continued rise in Treasury yields and mortgage rates weighs heavily on the home-builders sector. D.R. Horton’s stock has now tumbled 11.9% this week, which would make it the biggest weekly drop since it slid 12.9% during the week ended April 3, 2020. Elsewhere, shares of Lennar Corp. (LEN) dropped 3.9% and Toll Brothers Inc. (TOL) slid 3.6%, while the iShares U.S. Home Construction ETF (ITB) gave up 3.8%. Also getting hit was home-improvement retailer Home Depot Inc.’s stock (HD), which fell 2.5% to pace the Dow Jones Industrial Average’s decliners. The yield on the 10-year Treasury note, which is used to calculate mortgage rates, rose 4.0 basis points to a 2-year high of 1.773%. The fear is that higher rates could make homes less affordable.

-Tomi Kilgore

 

(END) Dow Jones Newswires

01-07-22 1459ET

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