Cramer’s Mad Dash: D.R. Horton
Speakers
Jim Cramer
— Host, Mad Money
Summary
CNBC’s Jim Cramer discusses a wave of analyst downgrades across homebuilders, arguing that high rates and elevated monthly payments are crushing starter-home demand and leaving the group without traction. The video also includes opening-bell mentions of Tortoise Capital’s AI Infrastructure ETF and Atlas Pharma, plus a brief incomplete Maduro/Chevron reference.
- Wells Fargo downgrades D.R. Horton; UBS downgrades Lennar and cuts KBH's price target.
- Cramer says rates remain too high relative to prior lows.
- He argues starter-home monthly costs are too elevated for buyers to engage.
- Homebuilders are described as unable to gain traction despite cheap-looking prices.
- The opening bell segment highlights Tortoise Capital's AI Infrastructure ETF launch.
- Atlas Pharma is noted for a recent listing and name change.
- The anchor observes the VIX around 15 and a calm market tone.
- Cramer begins a brief, incomplete Maduro/Chevron-related market comment before the transcript ends.
Ideas
High rates leave homebuilders unattractive
Research firms are turning negative on housing: Wells Fargo downgraded D.R. Horton, UBS downgraded Lennar, and KBH received a price-target cut. Cramer argues this reflects rates that are still too high relative to prior lows, and the monthly cost of a starter home is far above the headline price. As a result, starter homes/homebuilders cannot gain traction and the group is unattractive, with no buyer interest despite cheap-looking prices.
