Mortgage Rates Are Keeping Buyers on the Sidelines. When They Finally Drop, Here Are 2 Homebuilder Stocks I'm Dying to Buy

The 30-year mortgage rate in the United States is creeping back toward 7%. If 2026 ends the year at or around these levels, this would be over four years with loan rates above 6%, the highest level since the housing bust in 2008.

Rising interest rates are straining home affordability and destroying homebuying demand. Homebuilding stocks are getting caught in the crossfire, such as NVR (NYSE: NVR), which is down 36% from its highs. However, if mortgage rates do finally fall, NVR would be one of two homebuilding stocks I would be eager to add to my portfolio.

Here's why homebuilding stocks should thrive with lower mortgage rates.

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