Interest rate effect weighs on Toll Brothers, purchase orders for luxury homes down by 60%

Toll Brothers, the largest US luxury home builder (at least $ 1 million worth), reported a 60% drop in quarterly orders and cut its sales outlook as rising interest rates are holding back demand. even at the high end of the market. For the three months to July, signed purchase contracts plummeted 60% from the previous year to 1,266. Analysts had expected 2,568. The company expects to deliver 10,000 to 10,300 homes for the full year.

However, Toll Brothers shares closed up 1.19% yesterday.