D.R. Horton downgraded at Raymond James on entry-level homebuyer pressures

As previously reported, Raymond James downgraded D.R. Horton (DHI) to Market Perform from Outperform with no price target The firm is “compelled” to adopt a “higher for longer” view on mortgage rates and housing affordability, in-line with the market’s consensus reaction so far in the wake of Tuesday’s decisive election results, the analyst tells investors. The firm is lowering its EPS estimates and rating on D.R. Horton given the near-term pressures it sees on entry-level homebuilders, whose core first-time buyers are likely to face even greater affordability challenges this spring, the analyst stated.