National homebuilder index declines as single-family starts plummet

Yahoo Finance Live anchors Dave Briggs and Seana Smith look at the state of the housing market as 16% of home purchases in July fell through and confidence falls.

Video transcript

DAVE BRIGGS: Single family housing starts plummeting more than 10% in a month. Also, 63,000 or a full 16 plus percent of all home purchases in July fell through. With the exception of the early days of the pandemic, that's the highest number ever recorded. Home Depot, though, did top Q2 expectations, thanks, in large part, to inflation. What's been the reaction there, Seana?

SEANA SMITH: So, Dave, take a look at Home Depot. You can see shares up just about 4%. Now taking a look at a longer chart over the last month, you can see the stock up just about 11%, although we are starting to see some cooling in the housing market. Home Depot, though, at least for now, able to shake off some of those fears.

Lowe's, we're going to get the results from Lowe's tomorrow. You can see the stock up just around 3% today, up 15% over the last month. Now take a look at the pure play in home builders. A bit of a mixed picture here. You have Lennar, one of those, companies trading to the upside. Toll Brothers, on the other hand off just about a half of a percent, Dave.