Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

As per the latest data published by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, housing production across the U.S. rose 22.7% in the month of November, the highest increase in nearly six years.

Both single family and multifamily starts reached a five-year high as mortgage rates continued to remain affordable and pent up demand provided the necessary impetus to the housing market. This implies that home buyers, who have been waiting on the sidelines, now believe that the economic scenario is suitable for implementing their home buying decision.

In Nov 2013, housing starts for single family homes rose 20.8% while multi-family construction rose 26%. The combined starts grew highest with 41.7% in the Midwest, followed by 38.5% in the South and 8.8% in the West. However, the Northeast region witnessed a decline of 29.4% as far as combined housing starts were concerned.

Meanwhile, building permit, which indicates future homebuilding activity, declined 3.1% to 1.007 million in November. This is the second month in which new permit issuance crossed the million mark.

Despite headwinds like rising mortgage rates, the government shutdown and rising cost of building materials and labor, the housing market has been steady for a while now and 2014 is expected to witness a solid increase in housing starts and home sales.    

Rising interest rates notwithstanding, some companies like Lennar Corporation (LEN - Analyst Report) and Toll Brothers, Inc. (TOL - Analyst Report) beat the Zacks Consensus Estimate on both earnings and revenues for the fourth quarter of fiscal 2013 on the back of strong volume and prices.

However, other companies PulteGroup, Inc. (PHM - Analyst Report) and KB Home (KBH - Analyst Report) has been witnessing weak orders as the sharp increase in interest rates led to increasing cancellation rates and lower orders for many homebuilders.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RAMBUS INC RMBS 12.56 +6.53%
DIXIE GROUP DXYN 15.46 +5.31%
BOFL HOLDING BOFI 85.39 +5.08%
NETFLIX INC NFLX 346.93 +4.68%
E COMMERCE C DANG 12.58 +4.14%