Homebuilder stocks are rising a day after the Federal Reserve kicked off its rate-cutting cycle, lowering the benchmark rate by half a percentage point.

A lower federal funds rate exerts downward pressure on 澳洲幸运5官方开奖结果体彩网:mortgage rates, which are a 澳洲幸运5官方开奖结果体彩网:bit below 6%. That has helped lift shares of homebuilders such as KB Home (KBH), Smith Douglas Homes (SDHC), and Lennar Corporation (LEN) higher Thursday. 

Bank of America analysts are bullish on the sector, raising their price targets for seven homebuilding companies by an average of 11%. The biggest boos🐠t went to KB Home, which had its price target bumpe🃏d 20% to $90 from $75. Shares of the Los Angeles-based company rose about 3% Thursday.

Lower mo𝓀rtgage rates should drive more housing demand, the analysts wrote in a note🗹 Thursday, which should in turn improve sales and margins for homebuilders. Additionally, homebuilders have done a better job at returning capital to shareholders.

Lennar is expected to report earnings after the bell today. KB Home will report on Sept. 24.

August 澳洲幸运5官方开奖结果体彩网:existing-home sales fell, according to fresh data.