Homebuilders Downgraded at Wells Fargo on Weak Housing Reports


Soaring mortgage charges are slamming the housing market.

For instance, pending residence gross sales dropped 3.9% in April from March, the sixth straight month-to-month decline, in line with the National Association of Realtors.

“Pending contracts are telling, as they better reflect the timelier impact from higher mortgage rates than do closings,” Lawrence Yun, NAR’s chief economist, stated in a press release. “The latest contract signings … are at the slowest pace in nearly a decade.”

All the unfavorable housing information is affecting Wells Fargo analysts’ view of homebuilder shares. “Our proprietary housing-market checks in May confirmed that housing inflection happened in April,” they wrote in a commentary.

Source: www.thestreet.com