Lennar Reports Q3 Earnings Amid High Mortgage Rates and Resale Competition
Lennar Corporation (NYSE:LEN) delivered 20,840 homes in the third quarter of 2026, meeting its guidance range. However, new orders fell slightly below expectations at 20,879 units. The company reported net earnings of $284 million with a GAAP EPS of $1.19 and improved gross margin to 15.8%. Despite these results, Lennar faces challenges from rising mortgage rates near 7%, affordability issues for buyers, and increased competition from the resale market in key states like Texas and Florida. Lennar is maintaining production levels through pricing adjustments and incentives while focusing on cash generation and construction efficiency. The company expects to deliver between 22,000–23,000 homes in Q4 with gross margin projected at 15.5%–16%. Stuart Miller, Executive Chairman and CEO, noted that fewer families can afford down payments or qualify for mortgages due to inflationary pressures affecting household budgets. The company also highlighted the impact of active resale listings on buyer competition but acknowledged potential benefits from move-up demand as homeowners sell existing properties.
Tickers: $LEN