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...These debts include mortgages and loans for cars, rental equipment and yachts....
...He said incentives like mortgage buydowns — when builders absorb the cost of a mortgage for some or all of the term — have helped to combat affordability issues faced by homebuyers turned off by high interest...
...US homebuilder Lennar Corp said housing demand strengthened as homebuyers adjust to higher mortgage rates amid a limited supply of housing....
...Shares in DR Horton, Lennar and NVR have dropped more than 16 per cent since their peak in July. Those of PulteGroup, which had surged 86 per cent in 2023 until August, are down by a similar amount....
...Lennar Corp rose fractionally. The S&P 500 was up 0.3 per cent....
...The New York-based securitised products business packaged debts, such as mortgages and loans for yachts, before selling them on as securities....
...Blackstone Mortgage Trust said in an emailed statement: “This report is highly misleading and represents a fundamental misunderstanding of our senior secured lending business.”...
...Mortgage rates have doubled in the past year and a half, raising the cost of financing a home....
...However, while higher mortgage rates have cooled the pace of existing home sales, new home sales have remained surprisingly robust due to the limited supply....
...Warren Buffett’s Berkshire Hathaway has splashed out $814mn for stakes in three US housebuilders: DR Horton, Lennar and NVR....
...They have cut lending rates, mortgage rates, business taxes, stock-trading fees and even admission costs at tourist sites; extended EV subsidies; relaxed regulations; intervened in forex markets; and extended...
...Since the start of 2022, mortgage rates have more than doubled — with the average 30-year fixed rate over 7 per cent....
...For instance, here’s an extract from a filing by Manhattan Bridge Capital, a small Nasdaq-listed mortgage Reit: No Adverse Material Change....
...However, while higher mortgage rates have cooled the pace of existing homes sales, new homes sales have remained surprisingly robust owing to the limited supply....
...The fund also holds Cairn Homes, the Irish housebuilder with a London listing, which trades on a p/e of 8.7 times, compared with US housebuilders such as Lennar, trading at nearly 11 times....
...Berkshire disclosed it had purchased 6mn shares of DR Horton, worth about $726mn at the end of the second quarter, as well as 152,572 shares in Lennar and 11,112 shares of NVR....
...The increases defy conventional wisdom with mortgage rates rising. But rising borrowing costs have proved a blessing for housebuilders. Find out why....
...KKR’s recent agreement to buy up to €40bn of consumer loans originated by PayPal is one among various efforts by the firm to break into “asset-based” finance — fixed-income products such as mortgages, car...
...Lennar rose 4 per cent after bumping up guidance for how many houses it would build this year. Homebuilders are liking this housing market, more on which below....
...In those transactions, a pool of assets — such as mortgages, credit card receivables or auto loans — are packaged together, with the interest payments funding new slices of debt that are sold on to investors...
...The new policy covers apps offering personal, payday and peer-to-peer loans, but not mortgages, car loans or credit cards....
...OK, so there was a liquidity problem with SVB and something about mortgage-backed-securities, and fundamental timing mismatches of liabilities....
...Mortgage issuance is going to be down when you double rates. Same thing with auto lending. The one shoe that hasn’t dropped yet are cap rates and debt yields on commercial real estate....
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