If the economy continues to gain momentum, not even rising mortgage rates will slow down the home building and real estate industry.
CNN Money reports that builders have been thriving since early November, when Donald Trump was elected president of the United States. Stock prices for Pulte, DR Horton, and Lennar have all risen more than 10 percent over the last two months.
Stuart Miller, the CEO of Lennar, said this week that wage and job growth have increased builder optimism and consumer confidence. He said that his company’s sale pace was faster than expected in the first quarter.
New home sales surged more than 6% in February, to their highest levels in seven months. This could be just the beginning of an upturn. "Taking into account a wide variety of indicators, the housing market continues its march higher. We expect further gains this year," said Barclays economist Rob Martin in a report about the new home sales figures Thursday.