New York, January 9, 2026, 12:48 (EST) — Regular session
- Builders FirstSource shares rose about 11% as housing-linked stocks rallied on a White House push to cut mortgage costs.
- The move put rate-sensitive homebuilding suppliers back in focus after months of choppy housing demand.
- Traders are watching for details on execution, mortgage-rate moves, and the company’s next earnings update.
Builders FirstSource shares jumped 10.8% to $123.27 in midday trading, as investors chased housing-linked stocks after President Donald Trump ordered a $200 billion purchase of mortgage bonds.
The trade is simple: cheaper mortgages can pull buyers back in. For a supplier tied to new-home construction and repair work, even a small shift in demand can swing volumes and margins.
It also lands at a jittery moment for anything rate-sensitive. Investors have been punishing housing names on affordability worries, then snapping them up on any hint that borrowing costs might ease.
Trump wrote on Truth Social that he was ordering representatives to buy $200 billion in mortgage-backed securities, bonds built from bundles of home loans, with the aim of pushing mortgage rates and monthly payments down. Federal Housing Finance Agency Director Bill Pulte said Fannie Mae and Freddie Mac would execute the purchases and added, “we’re very serious about executing on it,” while pointing to more housing initiatives at Davos later this month. Redfin’s head of economics research, Chen Zhao, called the move a “fairly small impact,” estimating it could shave 10 to 15 basis points — 0.10 to 0.15 percentage points — off rates, with demand so far slow to respond even as rates have eased. (Reuters)
The policy headline lifted homebuilders and lenders too. “Every little bit will help push mortgage yields lower,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management, but he warned the move could be “self-defeating” if it boosts demand without fixing supply. (Reuters)
Builders FirstSource sells lumber, components and other building products to professional builders, so its stock often trades as a read-through on construction activity rather than company-specific news. When mortgage headlines move the group, it tends to move with it.
But the plan is short on detail and the market may be getting ahead of itself. If execution drags, or mortgage rates barely budge, today’s rally can fade fast — and tighter supply could keep home prices high even with lower monthly payments.
Next up, investors will look for clarity from housing officials on timing and mechanics, and for any additional housing announcements tied to Davos. The next big company-specific checkpoint is Builders FirstSource’s earnings update, which Nasdaq data show is currently expected around February 19. (Nasdaq)
