Home builder stocks enjoy broad gains as Treasury yields fall to 1-month low

Shares of home builders were broadly higher Friday, as the continued drop in longer-term Treasury yields helped soothe some fears about home affordability. The iShares U.S. Home Construction ETF /zigman2/quotes/203468436/composite ITB -0.94% ran up 4.3% with all 47 equity components trading higher, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.94% edged up 0.7%. PulteGroup Inc. /zigman2/quotes/201694804/composite PHM -0.89% was the biggest gainer of the group, rallying 7.0%, which would be the biggest one-day percentage gain since it surged 7.4% on Nov. 4, 2020. Among the sector ETF's other more-active components, shares of Lennar Corp. /zigman2/quotes/202536373/composite LEN -0.65% climbed 5.2%, D.R. Horton Inc. /zigman2/quotes/202032328/composite DHI -0.34% hiked up 5.4%, Builders FirstSource Inc. /zigman2/quotes/208924960/composite BLDR -2.19% surged 6.4% and KB Home /zigman2/quotes/206220859/composite KBH -0.72% tacked on 4.4%. The yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +1.26% fell 8.4 basis points (0.084 percentage points) to a one-month low of 2.888%, and has dropped 59.5 basis points since it closed at an 11-year high of 3.483 on June 14, amid growing concerns over a possible recession. Meanwhile, lower Treasury yields lead to lower mortgage rates, which also lowers the cost of buying a home. Elsewhere, real estate services company Redfin Corp.'s stock /zigman2/quotes/203726414/composite RDFN -1.22% soared 8.6% on Friday.

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iShares U.S. Home Construction ETF

US : U.S.: Cboe BZX

$ 81.11

-0.77 -0.94%

Volume: 4.10M

Sept. 20, 2023 4:00p

/zigman2/quotes/210599714/realtime

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S&P 500 Index

US : S&P US

4,402.20

-41.75 -0.94%

Volume: 0.00

Sept. 20, 2023 5:27p

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PulteGroup Inc.

US : U.S.: NYSE

$ 76.45

-0.69 -0.89%

Volume: 2.49M

Sept. 20, 2023 4:04p

P/E Ratio

6.32

Dividend Yield

0.84%

Market Cap

$16.93 billion

Rev. per Employee

$2.59M

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Lennar Corp. Cl A

US : U.S.: NYSE

$ 116.53

-0.76 -0.65%

Volume: 1.98M

Sept. 20, 2023 4:00p

P/E Ratio

8.64

Dividend Yield

1.29%

Market Cap

$33.29 billion

Rev. per Employee

$2.79M

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D.R. Horton Inc.

US : U.S.: NYSE

$ 113.20

-0.39 -0.34%

Volume: 3.55M

Sept. 20, 2023 4:00p

P/E Ratio

8.05

Dividend Yield

0.88%

Market Cap

$38.43 billion

Rev. per Employee

$2.61M

/zigman2/quotes/208924960/composite

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Builders FirstSource Inc.

US : U.S.: NYSE

$ 127.16

-2.85 -2.19%

Volume: 1.03M

Sept. 20, 2023 4:00p

P/E Ratio

9.85

Dividend Yield

N/A

Market Cap

$15.90 billion

Rev. per Employee

$639,008

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KB Home

US : U.S.: NYSE

$ 48.06

-0.35 -0.72%

Volume: 2.60M

Sept. 20, 2023 4:00p

P/E Ratio

5.51

Dividend Yield

1.66%

Market Cap

$3.90 billion

Rev. per Employee

$2.93M

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U.S. 10 Year Treasury Note

BX : Tullett Prebon

4.47

+0.06 +1.26%

Volume: 0.00

Sept. 21, 2023 9:25a

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Redfin Corp.

US : U.S.: Nasdaq

$ 8.10

-0.10 -1.22%

Volume: 3.18M

Sept. 20, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$934.60 million

Rev. per Employee

$301,758