Some of the nation’s largest homebuilders are lowering prices, providing discounts and pulling out of land deals as higher mortgage rates on top of already sky-high home prices continue to take a toll on buyer affordability.
Miami-based Lennar Corp. and Los Angeles-based KB Home on Thursday both reported soaring year-over-year profits and revenue but declines in new orders and slowdowns in buyer traffic due to the higher rates.
Lennar’s profit increased 4% to $1.47 billion, but its new orders nationally decreased 12% year over year to 4,366 homes. KB Home pocketed $255.3 million, 70% more than it did a year prior, while orders were down 30% year over year to 3,137 homes.
