U.S. homebuilder PulteGroup’s third-quarter net income fell to $476 million, or $2.53 per diluted share, from $586 million, or $2.96 per share, a year earlier, as rising mortgage rates, inflation and global unrest pressured homebuying demand, the company said.
Home sale revenue fell 9% to $3.9 billion as closings declined 9% to 6,876 homes. The average selling price decreased 1% to $561,000. Home sale gross margin was 24.8%, compared with 26.2% in the prior-year quarter, and included $26 million of land impairments, equal to about 70 basis points. Selling, general and administrative expenses were $397 million, or 10.3% of home sale revenue, compared with $401 million, or 9.4%, a year earlier.
Net new orders fell 6% to 6,208 homes, valued at $3.5 billion, from 6,638 homes valued at $3.6 billion a year earlier. The average community count increased 7% to 1,077. Backlog stood at 10,298 homes valued at $6.4 billion, compared with 9,888 homes valued at $6.2 billion a year earlier.
“The rapid increase in interest rates has stretched affordability even further, made selling an existing home even harder, and has pushed even more consumers to the sidelines,” said Ryan Marshall, president and chief executive, in a statement. “Within this environment, we continue to appropriately balance the price and pace of home sales, align production accordingly, and remain disciplined in our allocation of capital.”
Financial services generated $46 million in pretax income, comparable with the prior-year quarter. Mortgage origination volume was 4,438, with principal of $1.9 billion. The mortgage capture rate was 84.6%, compared with 84.4% a year earlier.
PulteGroup repurchased 2.8 million common shares for $350 million during the quarter, at an average price of $124.70 per share. Through the first nine months of 2026, it repurchased 8.4 million shares for $1.0 billion, at an average price of $123.51 per share.