Evercore ISI sees signs of stabilization for homebuilders
Evercore ISI analysts said they continue to see signs of stabilization for homebuilders following its latest survey.
Analysts revealed in a note that the firm's homebuilder survey held steady at 39.4, following the pullback in late summer and this Fall.
The Evercore ISI Homebuilders survey is divided equally between public and private builders, with participants providing a rating of their sales of new homes on a scale from 0 = weak to 100 = strong.
«The survey remains -8.3 pts. below its recent high hit in late June, as higher mortgage rates have had an impact on orders,» the analysts cautioned. However, they noted that lower rates may be starting to help stabilize results.
«Since the summer high, data from private builders has been notably weaker than for public builders. For this week, both public builders and private builders held steady,» the analysts said.
They added that participants have commented that demand is still pretty good and lower mortgage rates are starting to help. In addition, builders are using incentives and mortgage rate buydowns to support activity.
Furthermore, Evercore said tight inventories in the new and existing home market continue to support pricing.
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