Loser: D.R. Horton
Return Since Shutdown: -6%
While homebuilders soared during the first half of 2013, most big names in the space have since lost those gains and then some. D.R. Horton (DHI) is a prime example — and things have only gotten worse since the federal government shut down last week.
DHI has shed 6% since Oct. 1, which helped erase the stock’s early September recovery and puts shares at 6% year-to-date losses.
Already, Fitch Ratings has warned that furloughs at the IRS, Social Security Administration, and Department of Housing and Urban Development could mean a delay of verifications to finalize home sales.
And if the shutdown continues, things will only get worse for homebuilders. While the Federal Housing Administration has continued to endorse loans for now, the organization has warned that could change if funding is missing for an extended period of time.