(Reuters) -U.S. homebuilder Lennar Corp reported an 11% rise in fourth-quarter profit on Wednesday as high property prices offset the impact from a shrinking pool of buyers due to a spike in mortgage rates.
Over the past two years, high demand for homes from people working remotely due to the pandemic drove up prices across the United States, boosting profits for builders such as Lennar and D.R. Horton Inc.
However, the industry now faces a cooling homebuilding market as the U.S. Federal Reserve’s aggressive monetary policy tightening to curb decades-high inflation has made borrowing more difficult.
Net income attributable to Lennar rose to $1.32 billion, or $4.55 per share, in the reported quarter, from $1.19 billion, or $3.91 per share, a year earlier.
Revenue rose about 21% to $10.17 billion.
(Reporting by Priyamvada C in Bengaluru; Editing by Shounak Dasgupta)
