(Reuters) – Lennar Corp on Tuesday posted a more than two-fold jump in quarterly profit as historically low mortgage rates and a COVID-19 pandemic-induced shift to suburban living encouraged more Americans to buy homes.
The housing market, one of the persistent bright spots throughout the pandemic-induced recession, however, faces prospects of a slowdown as mortgage rates rise on the back of a surge in U.S. Treasury yields.
Miami, Florida-based Lennar said orders — an indicator of future sales — rose to 15,570 homes in the first quarter from 12,376 homes, while the number of homes sold rose to 12,314 from 10,321.
Net earnings attributable to the company rose to $1 billion, or $3.20 per share, in the quarter ended Feb. 28, from $398.5 million, or $1.27 per share, a year earlier. Revenue rose to $5.33 billion, from $4.51 billion a year earlier.
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