“D.R. Horton Inc., the second-largest U.S. homebuilder, said orders in the fiscal fourth quarter plunged [39%] to the lowest in almost six years as customer cancellations soared [up to 48% from 38%] and banks restricted lending.”
“The reduced availability of certain mortgage products such as Alt-A loans and tighter underwriting guidelines has reduced the pool of available homebuyers.”
“More than 90 percent of D.R. Horton’s buyers used fixed rate mortgages for their purchase and 14 percent had Alt-A financing, the report said. Less than 1 percent were subprime borrowers, UBS said in the Sept. 24 report. Alt-A mortgages are available to borrowers with good credit who generally cannot or choose not to verify their income.”
∙ D.R. Horton Orders Fall to Lowest in Almost Six Years [Bloomberg]