Lennar margin 'circuit breaker': Is Stuart Miller right, wrong or bluffing?

Lennar margin 'circuit breaker': Is Stuart Miller right, wrong or bluffing?

A year ago, Stuart Miller described homebuilder margins as a “shock absorber.” The Lennar Executive Chair and Chief Executive Officer had begun doing so two or three years earlier, as mortgage-rate pathways began wreaking havoc on the post-pandemic housing market. The metaphor suited the moment. Mortgage rates had risen sharply, and buyer affordability had plummeted almost overnight. Homebuilders nationwide increased incentives and adjusted pric…