Mortgage rates remain elevated throughout February and reaching a two-month high, according to Freddie Mac's latest reading. Shares of homebuilder Toll Brothers (TOL) rise after topping fiscal first-quarter earnings estimates on Tuesday. What is Toll Brothers' guidance forecasting for US housing market hopes? John Lovallo, UBS US Homebuilders & Building Products Equity Research Analyst, explains patterns in housing demand and how homebuilders are managing to maintain resiliency amid mortgage rate and inventory pressures. "It's been a tale of two markets. The new home market has been very good, and we can talk about that. It's the existing home market, because there's no supply of inventory on the ground, which has been much more sort of locked in place, if you will," Lovallo tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Luke Carberry Mogan.
Two of the country's biggest homebuilders have said they aren't planning on pulling back on their practice of offering mortgage rate buydowns, where builders cover a portion of the interest rate a buyer pays on a loan.
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