Shares of U.S. homebuilding companies have fallen more than 20 percent since May, even as home- improvement retailers rose to a record high, a sign some investors are too pessimistic that higher mortgage rates could derail new construction.
Emerging-market stocks advanced to a three-month high after President Barack Obama delayed a decision on military action against Syria. Apple Inc.’s Asian suppliers paced declines among technology companies.
Kenyatta Harper, a freelancer for advertising agencies, is trading the one-bedroom Brooklyn, New York apartment she’s renting for $1,600 a month for a two-family home nearby that cost her about $600,000.
PulteGroup Inc. and D.R. Horton Inc., the largest U.S. homebuilders, tumbled after reporting lower-than-expected orders, adding to concerns that higher mortgage rates will hamper the nation’s housing recovery.
PulteGroup Inc., the largest U.S. homebuilder by market value, reported a drop in second-quarter net income as it recorded one-time costs, while orders for new houses missed some analysts’ expectations.