The housing market continues to be in flux due to high mortgage rates, recession fears, and growing uncertainty tied to U.S. tariff policies.

U.S. homebuilder Lennar Corp (LEN) on Monday reported second-quarter revenue that exceeded Wall Street expectations, sending its shares up nearly 3% in extended trading.

The company is navigating a challenging market as potential homebuyers delay purchases amid high mortgage rates, recession fears, and growing uncertainty tied to U.S. tariff policies.

Lennar said its incentives and lower prices supported sales, which declined 4.4% to $8.38 billion. Analysts had expected a wider decline to $8.16 billion.

Lennar delivered 20,131 homes during the quarter, above 19,690 units a year earlier and in line with its own forecast of 19,500 to 20,500 homes.

However, the average sales price declined to $389,000 in Q2 from $408,000 in Q1, which impacted profits.

The company's earnings nearly halved to $1.81 per share from $3.45 a year earlier. Analysts were expecting $1.94.

"As mortgage interest rates remained higher and consumer confidence continued to weaken, we drove volume with starts while incentivizing sales to enable affordability and help consumers to purchase homes," Co-CEO Stuart Miller said in a statement.

Up to its last close, Lennar stock is down 17% year-to-date.

On Stocktwits, retail sentiment for the company shifted to 'extremely bullish' as of early Tuesday from 'bullish' the previous day.

LEN sentiment and message volume as of June 17 | Source: Stocktwits

“Bears in disbelief," said one user, teasing the wider expectation of poor performance from the homebuilder due to continued pressures.

Another user, seeking to tone down the euphoria, said "no catalysts near term for at least next 6 months" for the company.

Lennar now expects Q3 new orders of 22,000 to 23,000, below the analysts' average forecast of 23,383.

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