Lgi Homes Inc (LGIH)

Shares of LGI Homes, Inc. (LGIH) dropped by 5.35% from $98.60 to $93.32 in the trading on Thursday October 5, 2023. The reasons why stock LGIH is down today includes:

• High mortgage rates: On October 4, the U.S. 30-year mortgage rate hit 7.49%, the highest level since December 2000. Today, on October 5, the weighted average mortgage rate remained relatively stable at 3.6% in the US. Despite rising rates, household financial obligations decreased. This, coupled with soaring home prices, has hit affordability hard, impacting LGI Homes. Consequently, LGIH stock dropped noticeably.
• Weaker-than-expected September and Q3 Home Closings: LGI Homes made an announcement on October 4, 2023, stating that they had finalized the sale of 540 homes in September, which marked a decrease from the 624 homes sold in August. This brought their total home closings for the third quarter to 1,751 homes, falling short of the consensus expectation of 1,910 closings.