Home Depot: Housing finance reform is crucial
Executives pay close attention to mortgage market
Although Home Depot (HD) reported strong second-quarter earnings, it does not mean the giant home improvement store has nothing to worry about. According to an article in MarketWatch, Chief Financial Officer Carol Tomé said mortgage-financing availability is a top concern when it comes to the housing market.
“There’s been some modest movement,” she said. “Something’s got to move on mortgage-financing reform. So for us, we continue to pay real close attention to that.”
A recent Fannie Mae survey found that 36% of lenders say they expect to tighten their credit standards as a result of QM rules, while 6% say they expect to ease their underwriting criteria.
Home Depot posted revenue of $23.8 billion in the second quarter, rising 5.7% over the same quarter last year. Home Depot's second quarter revenue exceeded the Wall Street consensus of $23.5 billion.
And as a result, the store's stock surged Tuesday. Home depot fished Tuesday at $88.23 and is already up 1.76% Wednesday.