(Reuters) – U.S. homebuilder Lennar Corp said on Thursday its quarterly profit rose, as a production deficit and a chronic supply shortage resulted in sustained housing demand.
Existing housing supply in the market remains tight as a majority of homeowners choose to stay locked in a fixed mortage rate below 5%, making them unlikely to resell and upgrade at a time when current rates are hitting a two-decade high at about 7%.
The “rate-lock in” effect has been a tailwind for homebuilders this year, even as high home prices constrain affordability for many buyers. The S&P Composite 1500 Homebuilding Sub Index is up almost 76% this year.
The second-largest U.S. homebuilder said net earnings attributable to Lennar was $1.36 billion, or $4.82 per share, for the three months ended Nov.30, compared with $1.32 billion, or $4.55 per share, a year earlier.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shinjini Ganguli)
