(Bloomberg) -- Lennar Corp., the first big U.S. homebuilder out of the gate this earnings cycle, reported quarterly orders that beat expectations. a sign that low mortgage rates are fueling demand. The shares rose.
In the three months through May, home-purchase contracts rose 1% from a year earlier to 14,518 homes, the Miami-based company said in a statement Tuesday.
Key Insights
- Lennar's performance is evidence that the slowing market got a lift from a drop in mortgage rates just in time for its key spring selling season. The growth in new home orders was a surprise.
- Profit margins were helped by falling lumber prices and a stronger demand meant fewer buyer concessions were necessary.
- Lennar is benefiting from its heavy concentration in strong markets like Texas, where orders rose more than 3%.
Market Reaction
- Lennar shares climbed 4.1% in pre-market trading in New York.
Get More
- Click here to read Lennar's earnings statement.
--With assistance from Karen Lin.
To contact the reporter on this story: Prashant Gopal in Boston at pgopal2@bloomberg.net
To contact the editors responsible for this story: Debarati Roy at droy5@bloomberg.net, Christine Maurus
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