- PulteGroup and NVR, two of the biggest US homebuilders, both reported quarterly earnings per share below analyst estimates as orders fell. Elevated mortgage rates, high gasoline prices and weak consumer confidence all weighed on sales, according to PulteGroup CEO Ryan Marshall.
- PulteGroup cut its full-year home delivery guidance by as many as 2,000 homes. NVR missed earnings estimates for a third straight quarter, and its revenue fell 13% from a year earlier.
- The backdrop is grim across the sector, with pending sales of existing US homes falling to a record low in September, according to the National Association of Realtors. Homebuilder confidence this month dropped to a 14-year low.
- Even so, PulteGroup shares gained as much as 4% in early New York trading and are roughly flat for the year, while NVR was little changed and is down about 18% in 2026. The muted reaction suggests investors had largely braced for a weak quarter.
What Happened?
PulteGroup and NVR reported quarterly results on Thursday that missed analyst estimates as high rates and global turmoil crimped sales, Bloomberg reported. Both builders saw orders decline as elevated mortgage rates crushed the hopes of many would-be buyers. “There’s so many things out there that we just have zero control over,” Marshall told analysts, citing high gasoline prices and weak consumer confidence. He added that some prospective buyers are being held back by difficulties selling their current homes.
Why It Matters?
The comments describe a housing market stuck in a lock-in loop, where existing owners struggle to sell and so cannot become new buyers. That hurts builders twice, because it shrinks the pool of move-up buyers while high rates keep first-time buyers on the sidelines. A cut of up to 2,000 deliveries is a direct hit to revenue for the rest of the year, and NVR’s third straight miss shows even conservative operators are not immune. PulteGroup rising on a miss suggests much of the bad news was already in the price after builder confidence fell to a 14-year low.
What’s Next?
Mortgage rates remain the key variable for orders, given that Marshall blamed them for keeping buyers away. Watch whether other builders follow PulteGroup in cutting delivery targets as they report. Upcoming pending home sales data will show whether September’s record low marks the bottom. Any sustained relief in rates would be the clearest catalyst for a rebound in demand.
Affected Tickers and Coins: PHM, NVR, ITB, XHB
Source: Bloomberg
