Phillippe Lord on mortgage rates
From Meritage Homes CEO: We fill a void in housing market with move-in ready homes · · CNBC Television
“With rates in the high 6s or the 7s, we're able to buy people down into something below 5%, which really is the key to unlocking affordability for most of our customers, which are first-time home buyers.”
On , Phillippe Lord, Chief Executive Officer, Executive Vice President & Director at MERITAGE HOMES CORP, spoke about mortgage rates during Meritage Homes CEO: We fill a void in housing market with move-in ready homes on CNBC Television.
About Phillippe Lord
Phillippe Lord, CEO of Meritage Homes, appeared on CNBC multiple times between 2023 and 2024 to discuss the housing market. He stated that the company focuses on providing move-in ready inventory to fill a void in the market, particularly for first-time home buyers. Lord noted that Meritage Homes uses incentives to buy down mortgage rates for customers, describing the ability to reduce a rate from the high 6s or 7s to below 5% as key to unlocking affordability. He attributed sustained home prices to an imbalance of demand over supply and expressed that a strong economy and low unemployment are positive factors for housing, while adding that any policy changes affecting affordability are critical to the business. Lord commented on the company's shareholder return strategy, which included implementing a dividend, buying back shares, and announcing a stock split. He characterized the housing market as having low supply industry-wide, with new home construction providing an alternative to the "locked in" existing home market. Lord stated that building costs had trended down from their peak and that the company was planning its business around the expectation that mortgage rates would "stay higher for longer."