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LEN
CNBC
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The Fed cut its interest rate, but long-term rates — including those on mortgages — went higher

1. 10-year Treasury yield rose sharply despite Fed's interest rate cut. 2. Lennar missed revenue expectations and provided weak delivery guidance. 3. Higher yields signal potential challenges for mortgage-related costs. 4. Inflation concerns persist, impacting bond investor decisions. 5. Lower mortgage rates correlated with Fed's policy but are now rising.

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FAQ

Why Bearish?

Lennar's weak earnings and guidance amid rising rates signal declining demand. Similar situations in the past have led to stock price declines.

How important is it?

Lennar's performance is directly tied to mortgage rates and economic conditions, indicating significant correlation.

Why Short Term?

Immediate reactions from analysts and investors can be swift following disappointing earnings results.

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