RBC Capital analysts provided their views on PulteGroup, Inc. (NYSE:PHM) after hosting a virtual investor meeting with CFO Bob O’Shaughnessy. The company is continuing to see a broad-based demand recovery though did not provide any post-quarter quantification.
According to the analysts, management chalks up more resilient demand and pricing power in part due to share shift given the lack of existing home supply as well as builders’ ability to better incentivize around mortgage rates.
The company is currently running a national 4.99% mortgage rate buy-down program, which has been an effective tool to bring buyers in – the exact rate level and cost of this program will vary somewhat depending on prevailing headline rates.