There could be trouble ahead for consumers and the economy if interest rates don't come down, the latest financial results from D.R. Horton suggest. The Arlington, Texas-based homebuilder reported quarterly earnings that missed Wall Street analyst estimates, and gave disappointing guidance about future results before the market opened Tuesday, sending shares tumbling 11%. CEO David Auld said interest rate volatility is keeping some homebuyers on the sidelines.
In fact, rates have actually increased since the Federal Reserve began its rate-cutting campaign in September, when it lowered the fed funds rate by half a percentage point . Strong economic data combined with uncertainty around the central bank's path for future rate cuts have weighed on the benchmark Treasury security. D.R. Horton said it expects revenue between $36 billion and $37.5 billion in the fiscal year ending in Sept. 2025, below the $38.