“This was an exceptionally strong quarter and speaks to the company’s ability to deliver on its operational and financial targets,” RBC Capital Markets analyst Robert Wetenhall wrote in a note.
Homebuilders remain bullish for the months ahead. According to the latest National Association of Home Builders/Wells Fargo national housing indices, confidence among industry leaders hit an 11 year high in December and continued to remain strong in January as builders voiced confidence over Trump’s skepticism regarding numerous business regulations as well as buyer demand through the first half of this year, BuilderOnline reports.
The strong results come in as the country experiences a rise in mortgage rates on the back of increased interest rates. Rates are expected to push higher as the Federal Reserve eyes three more rate hikes this year.
Looking ahead, the Trump administration’s decision to suspend a plan to reduce mortgage insurance premiums on federally insured home loans could weigh on the home construction sector.
For more information on the housing market, visit our homebuilders category.