Housing Oders Fall
Pulte Homes Slashes 2006 Forecast as Orders Fall 29%
June 2 (Bloomberg) -- Pulte Homes Inc., the largest U.S. homebuilder, cut its 2006 earnings forecast after orders in April and May fell 29 percent from a year earlier.
The company expects to earn $4.70 to $5 a share for the year, down from its previous forecast of $6 to $6.25 a share. Earnings in the second quarter will be 85 cents to 95 cents a share, the Bloomfield Hills, Michigan-based company said today in a statement.
Demand for U.S. housing is flagging at the height of what is usually the busiest time of year for real estate sales. Home-loan applications fell last week to the lowest level in four years, the Mortgage Bankers Association said yesterday. The average rate for a 30-year fixed mortgage was 6.6 percent last week, a four-year high, according to mortgage buyer Freddie Mac.
"Current demand varies by market, but overall it continues to transition after an extended period of stronger sales,'' Richard J. Dugas Jr., president and chief executive officer of Pulte, said in the statement. Orders are falling because of an increase in homes on the market, more cancellations and rising interest rates, he said.
To contact the reporter on this story:
Larry Edelman in Boston at at ledelman3@bloomberg.net.
Last Updated: June 2, 2006 06:09 EDT
Pulte Homes Slashes 2006 Forecast as Orders Fall 29%
June 2 (Bloomberg) -- Pulte Homes Inc., the largest U.S. homebuilder, cut its 2006 earnings forecast after orders in April and May fell 29 percent from a year earlier.
The company expects to earn $4.70 to $5 a share for the year, down from its previous forecast of $6 to $6.25 a share. Earnings in the second quarter will be 85 cents to 95 cents a share, the Bloomfield Hills, Michigan-based company said today in a statement.
Demand for U.S. housing is flagging at the height of what is usually the busiest time of year for real estate sales. Home-loan applications fell last week to the lowest level in four years, the Mortgage Bankers Association said yesterday. The average rate for a 30-year fixed mortgage was 6.6 percent last week, a four-year high, according to mortgage buyer Freddie Mac.
"Current demand varies by market, but overall it continues to transition after an extended period of stronger sales,'' Richard J. Dugas Jr., president and chief executive officer of Pulte, said in the statement. Orders are falling because of an increase in homes on the market, more cancellations and rising interest rates, he said.
To contact the reporter on this story:
Larry Edelman in Boston at at ledelman3@bloomberg.net.
Last Updated: June 2, 2006 06:09 EDT
posted by Ralph Marcus (Mark) Maupin | 5:41 AM
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