Toll Brothers Stock Falls 10% on Higher Material Costs and Rising Rates

Rising interest Rates and higher raw material costs saw leading luxury homebuilder Toll Brothers stock slump almost 10% despite reported better than expected fiscal second-quarter earnings Tuesday. Investors are uncertain about real estate in such an environment.

Homebuilder Lennar Revenue Surges, Tax Reform Earnings Switch

Homebuilder Lennar revenue rose 12% in Q4 earnings from the steady housing recovery.$LEN is benefitting from favorable interest rates and increased consumer confidence. Net earnings fell with key transactions moved to the upcoming quarter after Republican Tax Reform.

Lennar $LEN & CalAtlantic $CAA nearly $10B merger will create the country’s largest homebuilder

Lennar and CalAtlantic merger in nearly $10B deal will create the country’s largest homebuilder, with LTM revenues topping $17B and a market cap of roughly $18B. The new company will control 240K homesites, with 1.3K active communities in 49 markets across 21 states.

Lumber Futures in Perfect Storm Continue to Soar After Hurricane Harvey & Irma

Lumber futures are at 12 year highs after Hurricane Harvey and Irma. Prices have been rallying since the housing crash of 2008 and earlier this year the U.S. administration imposed tariffs on plywood coming from China and lumber coming from Canada. Wildfires across Canada and the western U.S. also pushed prices higher pre hurricanes.