D.R. Horton, Inc. (DHI) and PulteGroup, Inc. (PHM) are two prominent homebuilders in the United States. DHI is a homebuilding company that acquires and develops land and constructs and sells homes. It also provides mortgage financing services, title insurance policies, examination, and closing services, engages in the residential lot development business, and owns and operates oil and gas-related assets. PHM acquires and develops land primarily for residential purposes, constructs housing, and offers various home designs, including single-family detached, townhomes, condominiums, and duplexes. It arranges financing through the origination of mortgage loans primarily for homebuyers, sells the servicing rights for the originated loans, and provides title insurance policies and examination and closing services to homebuyers.
The pandemic-induced remote working lifestyle, low mortgage rates, and an improving job market led to surging demand for housing. This, coupled with declining inventory, caused home prices to increase by 18.8% in 2021. However, despite rising mortgage rates and escalating supply chain disruptions, lack of inventory and surging demand should keep the housing market red-hot this year as well.
