D.R. Horton, Inc. (DHI)

[PennyP1cker]

I see a message like this on another message board, "Sell DHI because interest rates are going up and there is no space/land to build on." Many reports are claiming that home builders will slip in 2018 due to higher interest rates.

Nonsense! The higher mortgage rates go, within reason (below 6% per Lawrence Yun), the more money goes into the pocket of DHI. Yes, higher interest rates lower demand a bit but demand is very high right now, far outstripping supply which is constrained. DHI is in a great position, it should be a great 2018. Now, if only DHI can turn a profit and announce a share buyback. That will take a few good quarters first. Some builders could slip a bit because they are not in the same great markets as DHI. DHI is in some of the best markets in my opinion.