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Lennar Profit Drops 52% as Mortgage Rates Stay High

By Markets Desk · 2026-09-17 · 1 min read
A modern suburban house exterior with a front door and windows
Illustration: Tradingbird

Lennar reported third-quarter net income of $283.9 million, a decline of over 50% from the previous year.

Lennar reported third-quarter net income of $283.9 million. This represents a drop of 52% from the $591 million recorded in the same period last year. Earnings per share fell to $1.19, down from $2.29. The company attributes the decline to sustained high mortgage rates. These rates reduced demand for new home purchases.

Shares of the Miami-based builder fell 3% after the market close. CEO Stuart Miller stated that the results were below expectations. He noted that the economic environment has deteriorated since the previous quarter. Consumer confidence remains weak, leading buyers to delay purchases.

Mortgage rates remain near seven percent

Mortgage rates neared 7% during the quarter. This level significantly impacts housing affordability. Inflation remains above the Federal Reserve target. Geopolitical tensions and higher oil prices drive this inflation. Miller explained that rates are responding to these macroeconomic factors.

A Reuters poll of property experts indicates rates will stay high. Forecasts show only modest declines in coming quarters. This outlook keeps home price growth muted through next year. The market faces a prolonged affordability crunch. U.S. homebuilder sentiment dipped in June and July.

Revenue declines and price guidance

Total revenue for the quarter ended August 31 fell 8%. The figure stood at $8.05 billion. This is a significant decrease from the prior year. Building costs have risen due to economic uncertainty. These factors pressure margins for major homebuilders.

Lennar expects average sales prices between $370,000 and $380,000. This range is below the analyst estimate of $383,610. Data compiled by LSEG confirms this guidance. The company anticipates continued pressure on pricing. Demand remains sluggish across the new-home sector.

Market outlook remains cautious

The housing market faces structural headwinds. High borrowing costs limit buyer eligibility. Supply constraints persist in key regions. Builders are adjusting inventory levels accordingly. The sector awaits further signals from monetary policy.

Source data from GN auto markets/housing: mortgage rates provides context. The current environment requires precise financial management. Companies must navigate uncertain consumer behavior. Profitability depends on controlling operational costs. The path to recovery remains unclear.

Based on reporting by theedgemalaysia.com, compiled by the Tradingbird desk.

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