Shares of homebuilders took a broad beating Thursday, as mortgage rates kept rising to a 23-year high, and prompting more home buyers to back off. The iShares Home Construction ETF ITB, -4.81% dropped 5.2% toward a four-month low in afternoon trading, the biggest one-day drop in 13 months, with all 46 equity components losing ground. Among the more-active homebuilders, shares of D.R. Horton Inc. DHI, -5.96% sank 6.3% toward a six-month low, of Lennar Corp. LEN, -5.14% shed 5.
said while new home listings for the four weeks ended Oct. 8 fell 3.9% from a year ago, the smallest decline in 15 months, buyers are “retreating” as mortgage-purchase applications were near their lowest levels in nearly 30 years. Redfin’s stock was down 6.1% at a nine-month low. The home construction ETF has tumbled 14.1% over the past three months, while the S&P 500 SPX, -0.93% has eased 3.3%.