Meritage Homes downgraded to Market Perform from Outperform at Raymond James

Raymond James downgraded Meritage Homes (MTH) to Market Perform from Outperform without a price target In the wake of Tuesday’s election results, the firm is compelled to adopt a “higher for longer” view on mortgage rates and housing affordability. According, it downgraded Meritage Homes, citing 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.” Coming out of a volatile October, Meritage was already facing pressure from a more competitive inventory environment, rising rates, and buyer anxiety over election uncertainty, the analyst tells investors in a research note.