Wall Street bets on better days ahead for US homebuilders

By ALEX VEIGA
AP Business Writer

LOS ANGELES (AP) — Homebuilder stocks are on a tear as investors bet builders’ prospects will brighten this spring homebuying season. KB Home, PulteGroup and Tri Pointe Homes are among more than a dozen U.S. homebuilders whose stock price is up by more than 20% this year. Meanwhile, the benchmark S&P 500 is up about 7%. Builders started lowering prices and offering incentives like paying buyers’ closing costs last year as surging mortgage rates triggered a housing slump. But now many builders are dialing back those incentives and even raising prices, encouraged by moderating mortgage rates and the prospect of capitalizing on demand amid a near-historic low level of existing homes for sale.