Shares of D.R. Horton Inc. DHI, -6.17% sank 5.8% in afternoon trading Friday, enough to pace the S&P 500’s SPX, -0.41% decliners, as the continued rise in Treasury yields and mortgage rates weighs heavily on the home-builders sector. D.R. Horton’s stock has now tumbled 11.9% this week, which would make it the biggest weekly drop since it slid 12.9% during the week ended April 3, 2020. Elsewhere, shares of Lennar Corp. LEN, -4.74% dropped 3.9% and Toll Brothers Inc. TOL, -4.42% slid 3.6%, while the iShares U.S. Home Construction ETF ITB, -4.53% gave up 3.8%. Also getting hit was home-improvement retailer Home Depot Inc.’s stock HD, -2.99%, which fell 2.5% to pace the Dow Jones Industrial Average’s DJIA, -0.01% decliners. The yield on the 10-year Treasury note TMUBMUSD10Y, 1.767%, which is used to calculate mortgage rates, rose 4.0 basis points to a 2-year high of 1.773%. The fear is that higher rates could make homes less affordable.
