CNBC's "Fast Money" Cracks In Homebuilder Foundation Grow… And De-Dollarization Drama 10/9/25
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Oct 9, 2025 Mike Wilson, Chief U.S. Equity Strategist at Morgan Stanley, and Stephen Kim, Head of Housing Research at Evercore ISI, delve into the wobbling homebuilder market. They analyze the sharp selloff in builder stocks and the factors squeezing margins, like policy risks and inventory pressures. Kim shares insights on the White House's approach to homebuilder challenges, while Wilson discusses housing dynamics in the broader market context. The duo also tackles alarming trends in the dollar market amidst growing de-dollarization fears, affecting global equities.
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Structural Problems Behind Builder Selloff
- Homebuilder stocks are under fresh pressure despite lower rates because structural cost and inventory dynamics outweigh rate moves.
- Regional inventory builds and policy rhetoric are amplifying downside for major builders.
Costs, Not Just Rates, Crimp Builder Margins
- Higher input costs and tariffs are squeezing homebuilder profitability even if rates fall.
- Mike Wilson warns lower mortgage rates alone won't restore builder margins amid cost inflation.
Policy Focus Could Hurt Builders Short Term
- The administration's focus on supply-side housing fixes risks depressing builder stocks through potential policy action.
- Stephen Kim says the current problem is weak demand, so supply pressure could worsen near-term dynamics.