PulteGroup Inc

**Strong Financial Performance**: PulteGroup reported a 16% year-over-year increase in Q3 earnings to $3.35 per share, driven by a 12% increase in closings (totaling 7,924 homes) and a 12% increase in home sale revenues to $4.3 billion. For the first three quarters of 2024, reported earnings increased 22% year-over-year to $10.28 per share.

**Challenges with Mortgage Rates and Affordability**: The company noted fluctuations in mortgage rates impacting buyer confidence, which resulted in decreased purchase agreements during the third quarter. Rates rose from 6% in September back to approximately 6.75%, creating affordability concerns among potential buyers, particularly first-time homebuyers.

**Elevated Incentives and Margin Forecast**: In Q3, incentives climbed to 7%, a 70 basis point increase from the previous quarter. For Q4, margins are expected to decrease to 27.5%-27.8% due to higher incentives and a changing geographical mix of sales, especially with a smaller contribution from the traditionally higher-margin active adult segment.