US homebuilder PulteGroup has posted a 6% rise in new orders for the second quarter of 2026, with the company reporting that profit margins are beginning to stabilise after a period of volatility. The results, released on Tuesday, beat market expectations and sent the company's shares higher in early New York trading.
The Atlanta-based builder said net new orders reached 7,400 homes in the three months to June, compared with 6,980 in the same period last year. Average selling prices remained broadly flat, while gross margins edged up to 28.3% from 27.9% a year earlier, suggesting that cost pressures and pricing power are coming into better balance.
For UK investors, the update provides a useful temperature check on the US housing market, which has faced headwinds from elevated mortgage rates and slowing demand. PulteGroup's performance is often seen as a bellwether for the sector, and the stabilisation in margins may ease some concerns about a sharper downturn across the Atlantic.
Analysts at Jefferies noted that the order growth was driven by improved traffic and conversion rates, particularly in the company's entry-level and move-up buyer segments. 'The data points to a market that is finding a floor, even if a full recovery remains some way off,' they said in a note to clients.
The broader S&P 500 homebuilding index rose 1.2% on the news, with peers such as DR Horton and Lennar also edging higher. UK-listed builders and construction suppliers, many of which have exposure to North American markets, could see a sympathetic lift when London trading opens on Wednesday.