By Abhinav Parmar
(Reuters) -U.S. homebuilder D.R. Horton topped analysts’ estimates for first-quarter results on Tuesday, helped by incentives and favorable housing demand.
Shares of the company, which rose more than 5% before the bell, pared gains and were down about 1% in afternoon trading.
Arlington, Texas-based D.R. Horton has offered incentives such as mortgage rate buydowns – permanent or temporary interest-rate reductions on home loans to mitigate customer worries about high interest rates – while also offering smaller homes.
“Despite continued affordability challenges and competitive market conditions, incentives such as mortgage rate buydowns have helped to address affordability and spur demand,” D.R. Horton Executive Chairman David Auld said.
It expects incentive costs to increase on homes cl