...October 14, 2025 This report does not constitute a rating action. What's new: Homebuilders are facing slower demand due to affordability challenges, rising supply, and economic and job uncertainty. While the 30-year mortgage rate has trended down this year, it's still in the 6.3% area and continues to dampen consumer sentiment. Builders are reducing starts to match the slower absorptions and lower the level of spec inventory. Higher- than-expected inventory levels and rising existing home inventory is hindering price levels as home price growth is slowing and, in some cases, declining as most builders are lowering prices through either continued elevated incentives or direct price cuts. These factors continue to pressure margins as the downward trend in profitability continues. Why it matters: Amid these concerns, Mattamy ended its fiscal year with S&P Global Ratings- adjusted debt to EBITDA of 1.7x. We believe the company has a limited cushion for any further downside but has the financial...
