Bloomberg is reporting something interesting: Home builders are making money, sure, but they’re making it thanks to selling mortgages, not properties.
At PulteGroup Inc., the second-largest builder by market value, mortgage revenue jumped 70 percent in the third quarter, almost six times the revenue gain from home sales. At Lennar Corp., the No. 1 builder, mortgage-unit revenue surged 60 percent, double the increase in sales revenue. Aided by lucrative lending units, both companies posted the biggest overall profits since 2006.
Click here to check it out, yo.
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