Stock Market Update
24-Jun-26 10:30 ET
Homebuilder stocks rally despite weak report
Dow +223.19
at 51890.03,
Nasdaq +124.30
at 25732.33,
S&P +32.63
at 7398.09
[BRIEFING.COM] The major averages remain modestly higher, supported by relatively broad participation this morning.
New home sales decreased 7.3% month-over-month in May to a seasonally adjusted annual rate of 580,000 (Briefing.com consensus: 627,000) from a downwardly revised 626,000 (from 622,000) in April. The level of sales in May is the second lowest over the last 12 months. On a year-over-year basis, new home sales were down 6.8%.
The key takeaway from the report is that new home sales in May were pressured by affordability constraints tied to rising mortgage rates. Notably, the West region, which features the highest-priced homes, saw the biggest hit to sales month-over-month; however, there was also weakness in the more affordable South region, which is the nation's largest homebuilding market.
Despite the weaker report, homebuilder stocks are rallying today as Treasury yields continue to move off their May highs.
