By Nicholas G. Miller
Shares of homebuilders rose as tensions in the Middle East appeared to ease, improving the economic outlook and restoring hopes about a recovery in the housing market.
D.R. Horton, Lennar, PulteGroup, Meritage Homes, Taylor Morrison, KB Home and Toll Brothers all gained more than 5%.
The beginning of the conflict in the Middle East had led mortgage rates to surge and fueled economic uncertainty, sending potential homebuyers to the sidelines and putting the long-awaited rebound in home sales at risk.
Homebuilder KB Home cut its fiscal-year guidance last month, warning that the conflict in the Middle East is creating uncertainty that could put off homebuyers.
But on Friday, Iran said the Strait of Hormuz is "completely open" to commercial vessels for the duration of a cease-fire between Israel and Lebanon, leading oil prices to plunge and stocks to rise.
Mortgage rates also tend to follow the 10-year U.S. Treasury yield, which moved significantly lower Friday.
Write to Nicholas G. Miller at nicholas.miller@wsj.com.
(END) Dow Jones Newswires
April 17, 2026 10:43 ET (14:43 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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