PulteGroup, Inc. 10-Q filed Oct 22, 2026

Modified

Demand conditions remained challenging throughfurther weakened during the secondthird quarter of 2026 as . Elevated mortgage rates, which increased sharply during the result third quarter of elevated mortgage interest rates2026, most notably during September, continue to pressure affordability and consumer demand. These conditions, together with higher housing costs, and general broader economic uncertainty. Volatility , and volatility in geopolitical conditions, in part due to tensions in the Middle East, hashave also negatively impacted inflation and , interest rates, further weakening and consumer confidence. We have continued responding to these conditions by adjusting production cadence and sales prices where necessary and focusing sales incentives on discounts on spec inventory (houses without customer orders), closing cost incentives, and mortgage interest rate buydowns. These pricing actions contributedWe have also continued to a 6% increase in net new orders in unitsmanage our spec inventory levels, but lower average selling prices and gross marginsleveraging sales incentives as needed. Despite these pricing actions, during the second quarter of 2026 net new orders in units decreased 6% compared to the prior year period. Closings decreased 89% in the secondthird quarter of 2026 compared to the prior year period primarily due to a lower order backlog entering 2026 compared to 2025, while average selling prices decreased 1%.