New York, January 9, 2026, 20:43 ET — Market closed.
- D.R. Horton shares surged 7.8% on Friday, spearheading gains in U.S. homebuilder stocks
- A Trump directive to buy $200 billion in mortgage bonds thrust rates back into the spotlight
- Upcoming catalysts include U.S. CPI data on Jan. 13 and D.R. Horton’s earnings report on Jan. 20
D.R. Horton’s stock surged 7.8% on Friday, closing at $157.28, following President Donald Trump’s directive to buy $200 billion in mortgage bonds to help lower housing costs. (MarketWatch)
The shift is crucial since homebuilders are directly linked to mortgage rates: even a slight change in monthly payments can shift demand. Lower rates also reduce the need for builders to throw in incentives to close sales.
Trump’s order focuses on mortgage-backed securities, those bundles of home loans sold to investors. FHFA director Bill Pulte confirmed Fannie Mae and Freddie Mac will handle the purchases. TD Cowen noted this move could tighten the spread between the 30-year mortgage and the 10-year Treasury — basically the difference between home-loan and government yields. Jefferies put mortgage rates needing to drop to the mid- to high-5% range from around 6.2% to boost affordability. “Every little bit will help push mortgage yields lower,” Annex Wealth’s Brian Jacobsen told Reuters. (Reuters)
Homebuilder stocks largely tracked each other. Lennar jumped 8.85% on the day, while D.R. Horton stood out as a key driver within the consumer discretionary sector. (Briefing)
Barron’s reported the 30-year fixed mortgage rate dropped to 5.99% on Friday, a figure many traders see as a key psychological barrier for demand. If rates hold at this level, builders might feel less need to “buy down” rates for buyers — a pricey incentive that’s been crucial in keeping sales afloat amid high borrowing costs. (Barron’s)
Wall Street shows a mixed stance on D.R. Horton ahead of its earnings report. Citigroup lowered its price target to $154 from $163 but maintained a neutral rating, according to MT Newswires. (MarketScreener)
Friday’s rally pushed the stock above its 50-day moving average of $148.57 and the 200-day average of $153.11, according to MarketBeat data. The shares are now trading within their 52-week range of $110.44 to $184.54. (MarketBeat)
D.R. Horton is set to announce its fiscal first-quarter results on Jan. 20 before the market opens, followed by a conference call at 8:30 a.m. ET. Investors will be focused on orders, cancellations, and the builder’s pricing power, particularly if incentives are increasing or easing ahead of spring. (Business Wire)
But the policy lift won’t follow a simple path. If cheaper financing sparks demand quicker than supply can catch up, prices might remain stubbornly high, leaving affordability unchanged. Plus, if mortgage spreads don’t narrow, buyers could still face rates higher than homebuilder optimists expect.
The next major economic data point is the U.S. consumer price index, set for Tuesday, Jan. 13 at 8:30 a.m. ET. This report has the potential to shake up Treasury yields and mortgage rates alike. Meanwhile, D.R. Horton will offer its next clear snapshot of demand and margins with earnings due Jan. 20. (Bls)
