America’s largest homebuilder, D.R. Horton (DHI), warned on Thursday that its key spring selling season has gotten off to a sluggish start as elevated mortgage rates and growing economic uncertainty continue to erode consumer confidence.
“This year’s spring selling season started slower than expected,” D.R. Horton CEO Paul Romanowski told analysts and investors on the company’s second quarter earnings call. “We have been more cautious due to continued affordability constraints and declining consumer confidence.”
The homebuilder reported a 15% year-over-year decline in net sales orders for its fiscal second quarter, which ended March 31. Its total sales of 22,437 homes fell short of analyst estimates for 26,228. Home closings also fell 15% year over year to 19,276, missing the analysts’ forecast of 20,219 homes.
The company’s cancellation rate increased slightly to 16% from a year earlier, signaling some hesitancy among buyers compared to the prior quarter’s 15% rate.
D.R. Horton also dialed back its full-year sales forecast, expecting revenue to land between $33.3 billion and $34.8 billion, below the analysts’ forecasts for $36.02 billion. The company also revised its home closings estimate, projecting a range between 85,000 and 87,000 homes, which missed forecasts for 89,669.
D.R. Horton stock rose 3% in early trade on Thursday following the results. The stock is still down over 13% in 2025 and 17% over the past year.
