DR Horton IncDHI

Why is DR Horton (DHI) moving?

Q3 202624 Jun – 10 Sep 2026

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DHI pressured by higher rates and profit decline despite policy boost

Mortgage rates rise, cooling demand The 30-year mortgage rate climbed to about 6.67% even as the Federal Reserve held steady, making monthly payments pricier and discouraging homebuyers. This directly weighed on D.R. Horton's sales and stock price.
Higher mortgage rates are a key near-term negative driver of demand and DHI's price.
Profit falls and guidance cut Q3 profit dropped to $904.9 million from $1.024 billion a year earlier, with flat revenue. Management cut full-year guidance to $32.5–$33 billion, signaling weaker expectations ahead.
Earnings decline and reduced guidance are direct negative drivers of investor sentiment and DHI's price.
Cancellations rise, margins shrink Cancellation rates increased to 20% from 17%, and gross margins fell to 20.7%. More buyers backing out and thinner profits point to persistent pressure on sales and profitability.
Rising cancellations and shrinking margins are operational negatives that hurt DHI's financial performance.
Housing law and Berkshire stake Congress passed the 21st Century ROAD to Housing Act, cutting red tape and limiting large investors from buying existing homes, which could boost new-home demand over time. Berkshire Hathaway also opened a new stake in DHI, signaling long-term confidence.
These are positive developments that could support future demand and investor sentiment, though benefits are longer-term.

August 202614 Aug – 10 Sep 2026

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Berkshire's new DHI stake meets weak housing demand and high mortgage rates

Berkshire Hathaway opens a new position in D.R. Horton Berkshire Hathaway, now run by Greg Abel, bought a small new stake in D.R. Horton and raised its Lennar stake by nearly 30% as part of a roughly $23.5 billion stock-buying quarter. A famous long-term investor choosing to own the stock can support DHI's price by improving how other investors see the company.
A well-known investor buying DHI is a fresh, price-relevant signal of confidence.
Mortgage rates stay near 6.5% even as the Fed holds steady The Fed has kept its rate at 3.75% for 231 days, but 30-year mortgage rates have climbed to about 6.67% because long-term Treasury yields are high. Costlier loans make monthly payments harder for buyers, which cools demand for new homes and pressures DHI's sales and price.
High mortgage rates are the main force squeezing homebuyer demand and DHI's results.
DHI beats Q3 estimates but cuts full-year guidance D.R. Horton earned $3.20 per share, beating expectations, yet management lowered its fiscal 2026 revenue outlook to $32.5-$33 billion and cut its home-closing forecast. A guidance cut tells investors future sales and profits will be weaker than previously thought, which weighs on the stock.
The lowered guidance is the clearest company-specific reason for negative pressure on DHI.
Cancellations rise and margins shrink as yields stay high DHI's cancellation rate jumped to 20% from 17% a year earlier, and home-sales gross margin fell to 20.7% as buyers walked away or demanded incentives. Long-term Treasury yields near year highs keep mortgage rates elevated, so this pressure on sales and profitability is likely to persist.
It shows the concrete damage high rates are doing to DHI's orders and profit margins.

Latest14 Aug – 10 Sep 2026

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Berkshire's new DHI stake meets weak housing demand and high mortgage rates

Berkshire Hathaway opens a new position in D.R. Horton Berkshire Hathaway, now run by Greg Abel, bought a small new stake in D.R. Horton and raised its Lennar stake by nearly 30% as part of a roughly $23.5 billion stock-buying quarter. A famous long-term investor choosing to own the stock can support DHI's price by improving how other investors see the company.
A well-known investor buying DHI is a fresh, price-relevant signal of confidence.
Mortgage rates stay near 6.5% even as the Fed holds steady The Fed has kept its rate at 3.75% for 231 days, but 30-year mortgage rates have climbed to about 6.67% because long-term Treasury yields are high. Costlier loans make monthly payments harder for buyers, which cools demand for new homes and pressures DHI's sales and price.
High mortgage rates are the main force squeezing homebuyer demand and DHI's results.
DHI beats Q3 estimates but cuts full-year guidance D.R. Horton earned $3.20 per share, beating expectations, yet management lowered its fiscal 2026 revenue outlook to $32.5-$33 billion and cut its home-closing forecast. A guidance cut tells investors future sales and profits will be weaker than previously thought, which weighs on the stock.
The lowered guidance is the clearest company-specific reason for negative pressure on DHI.
Cancellations rise and margins shrink as yields stay high DHI's cancellation rate jumped to 20% from 17% a year earlier, and home-sales gross margin fell to 20.7% as buyers walked away or demanded incentives. Long-term Treasury yields near year highs keep mortgage rates elevated, so this pressure on sales and profitability is likely to persist.
It shows the concrete damage high rates are doing to DHI's orders and profit margins.

July 202624 Jun – 22 Jul 2026

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Housing bill passed, but mortgage rates and weak Q3 profit pressure DHI

Housing supply bill becomes law Congress passed the 21st Century ROAD to Housing Act, which cuts red tape and limits large investors from buying existing homes. This should boost new home demand and lower costs for D.R. Horton over time, but the benefit will take years to show up.
This is a major new regulation that directly benefits DHI's business by increasing demand for new homes and reducing construction friction.
Mortgage rates rise to 6.49% The 30-year fixed mortgage rate climbed to 6.49%, making monthly payments more expensive for buyers. Higher rates cool demand for new homes, which pressures DHI's sales and stock price in the near term.
Rising mortgage rates directly reduce affordability and demand for DHI's homes, a key negative driver.
Forestar cash burn threatens land pipeline Forestar, which supplies lots to D.R. Horton, is burning cash and growing slowly. This could delay new communities and raise costs, hurting DHI's ability to build and sell homes compared to rivals.
This is a new risk to DHI's supply chain that could limit future growth and margins.
Q3 profit falls and guidance cut D.R. Horton's third-quarter profit dropped to $904.9 million from $1.024 billion a year ago, with flat revenue. Management lowered full-year revenue and closings guidance, and the cancellation rate rose to 20%, signaling softer demand and margin pressure.
This is the latest earnings report showing declining profitability and reduced outlook, a direct negative for the stock.

24 Jun – 22 Jul 2026

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Housing bill passed, but mortgage rates and weak Q3 profit pressure DHI

Housing supply bill becomes law Congress passed the 21st Century ROAD to Housing Act, which cuts red tape and limits large investors from buying existing homes. This should boost new home demand and lower costs for D.R. Horton over time, but the benefit will take years to show up.
This is a major new regulation that directly benefits DHI's business by increasing demand for new homes and reducing construction friction.
Mortgage rates rise to 6.49% The 30-year fixed mortgage rate climbed to 6.49%, making monthly payments more expensive for buyers. Higher rates cool demand for new homes, which pressures DHI's sales and stock price in the near term.
Rising mortgage rates directly reduce affordability and demand for DHI's homes, a key negative driver.
Forestar cash burn threatens land pipeline Forestar, which supplies lots to D.R. Horton, is burning cash and growing slowly. This could delay new communities and raise costs, hurting DHI's ability to build and sell homes compared to rivals.
This is a new risk to DHI's supply chain that could limit future growth and margins.
Q3 profit falls and guidance cut D.R. Horton's third-quarter profit dropped to $904.9 million from $1.024 billion a year ago, with flat revenue. Management lowered full-year revenue and closings guidance, and the cancellation rate rose to 20%, signaling softer demand and margin pressure.
This is the latest earnings report showing declining profitability and reduced outlook, a direct negative for the stock.