LEN - Home Depot Lowe's slip to to 52-week lows as higher rates hit housing demand

Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) fell to yearly lows on Thursday as the housing market cools off quickly in 2022. A surge in US Mortgage rates to nearly 6% this week, the greatest leap in 35 years, has cut into housing demand severely, judging by newly released data. On Thursday morning, homebuilding fell to a yearly low, plummeting 14.4%, while permits for future homebuilding declined 7.0%. Analysts had been anticipating far more modest declines. The steep drop shocked not only homebuilding stocks like D.R. Horton (DRH), Lennar (LEN), and KB Homes (KBH) to the downside, but stocks like Home Depot < > and Lowe’s < > that have long been aided by strength in the homebuilding sector. While DIY home repairs are a boost to each home improvement retailer, the expected loss of potentially lucrative demand from professional projects and slowing building activity as rising rates rise has affected both Lowe’s

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Home Depot, Lowe’s slip to to 52-week lows as higher rates hit housing demand