D
.R. Horton Inc.'s shares plummeted by as much as 15% on Tuesday, their largest intraday decline since March 2020, following disappointing quarterly results that highlighted affordability challenges in the housing market. The homebuilder reported weaker-than-expected orders for the three months through September and a lower forecast for home deliveries in fiscal 2025.

    To mitigate these issues, D.R. Horton has been offering incentives such as mortgage rate buy-downs to attract customers. However, executives acknowledged that buyers are still hesitant due to rising interest rates and home prices. Chief Executive Officer Paul Romanowski attributed the slowdown to market uncertainty, including the upcoming presidential election and recent volatility in mortgage rates.

    While buyer contracts increased 5% year-over-year in the latest quarter, falling short of analyst estimates, D.R. Horton expects to close between 90,000 and 92,000 home sales in fiscal 2025, below consensus forecasts. The company's efforts to boost demand will continue, with a focus on stability in mortgage rates rather than lower costs.