D.R. Horton cuts sales view
The largest home builder in the United States lowered its sales forecast for Q4 "due to continuing significant disruptions in the supply chain, including shortages and delivery delays in certain building materials along with tightness in the labor market."
The company now expects to close 21,300 homes to 21,700 homes compared to the previous range of 23,000 homes to 24,500 homes.
Housing is starting to look like auto sales. Prices remain sky high but inventories are low and supply chain bottlenecks aren't allowing for construction to fill in the gap. It's a stagflationary scenario but how it resolves depends on whether the wait for new homes/autos to be built results in demand destruction or demand delay. The upside view is that this simply results in growth being pushed back.
We get data at 10 am ET on home builder sentiment. The consensus is a flat reading at 75.
