D.R. Horton Under Pressure from Margin Erosion

about 2 months ago

Nora Melinda

"Yes, not a pretty look here. Uh so we did see shares that ended down 3.2% for D.R. Horton. That's ticker DHI. This is after incentives are really pressuring mar uh margins. As we know, a lot of the incentives in the home building space tend to be whether it's a rate buy down, making sure that uh the customer has a rate that's about maybe 1% or a half percentage point below what the general market rate is or throwing in just some random incentives like a dishwasher, things to make it a bit more appealing here for uh customers."

D.R. Horton (ticker DHI) is facing margin pressure due to increased incentives offered to home buyers. The commentary points out that standard incentives in home building, such as rate buy-downs and additional perks, are impacting the company's margins negatively, which is reflected in a 3.2% decline in its share price.

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