Home builders are struggling, and it’s not just because new houses aren’t affordable

By Tomi Kilgore
Market Watch
October 28, 2025
Category: Finance & Economics
Region: United States

Shares of D.R. Horton took a hit Tuesday, as the home builder confirmed that the market for new houses was still weak, and it wasn’t just because prices and mortgage rates were too high — people are afraid to shell out so much for a new house when they’re worried about the economy and their jobs. …But even with lower prices and mortgage rates, the number of homes closed fell 1.2% to 23,368, which was below the average analyst estimate. And that weakness comes despite higher incentives to home buyers to boost sales, which pushed profits below what Wall Street was expecting. …Chief Executive Paul Romanowski said affordability was certainly still an issue. But consumers were also concerned about the “volatility and uncertainty” in the economy, which may be leading to worries about the job market. It certainly won’t help matters to see large layoff announcements from high-profile companies.

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