DHI · Earnings call · 2026Q3T · Full report

Interest Rate Environment

HORTON D R INC /DE/ · 2026-10-29 · Importance 32 · Surprise 24

The CFO attributed negative changes in expected values on some completed rental projects to a spike in interest rates during the latest quarter, which led a subset of projects to trigger impairment. Management expects elevated rates to dampen potential margins on forward sales into fiscal 2027, particularly in the multifamily portion of the rental segment. By contrast, the company expects returns in single-family rental to improve over time following its shift to a full forward-sale model, with investors in place before projects begin.

Key facts

• D.R. Horton expects elevated mortgage rates to continue and is not expecting much rate reduction in the near term.
• D.R. Horton said it expects its mortgage rate buydown to remain about 1.5 percentage points below market.
• A high-80s to low-90% share of D.R. Horton's mortgage-company buyers received a rate buydown, and the company expects that share to remain in that range.