KBH

Housing Starts Increase: In July, housing starts rose by 5.2% month-over-month to an annual rate of 1.428 million, exceeding the consensus estimate of 1.290 million.

Single-Family Housing Growth: Single-family housing starts increased by 2.8% month-over-month, reaching 939,000 from a revised June figure of 913,000.

Decline in Building Permits: Building permits fell to a seasonally adjusted annual rate of 1.354 million, down 2.8% from June and below the expected 1.390 million.

Rising Housing Completions: Privately owned housing completions rose 6.0% month-over-month to 1.415 million, although this figure is 13.5% lower than the same time last year.

Investor Sentiment: Anticipation of lower mortgage-loan rates has led to a rise in share prices for U.S. home builders, indicating positive investor sentiment in this sector.

Valuation Comparison: Home builders' stocks are currently well-priced on a forward price-to-earnings basis compared to the S&P 500, making them attractive for valuation screening.

Upcoming Events: The rise in home builder stocks coincides with the Federal Reserve's annual Jackson Hole Economic Policy Symposium, where Fed Chair Jerome Powell will speak.

Interest Rate Outlook: Investors are keenly awaiting insights on interest-rate policy from the upcoming Federal Open Market Committee meeting scheduled for September 16-17.

Homebuilder Stocks Surge: Homebuilder stocks, including major companies like D.R. Horton and Lennar, are rising due to investor optimism about a potential interest rate cut by the Federal Reserve next month, which could make homeownership more affordable and stimulate demand in the housing market.

Impact on Related Industries: The positive sentiment in the housing sector is also benefiting home improvement retailers such as Home Depot and Lowe's, as lower mortgage rates are expected to increase both new construction and renovation activities, driving higher consumer spending.