Homebuilder stocks are rising a day after the Federal Reserve kicked off its rate-cutting cycle, lowering the benchmark rate by half a percentage point.

A lower federal funds rate exerts downward pressure on 澳洲幸运5开奖号码历史查询:mortgage rates, which are a 澳洲幸运5开奖号码历史查询:bit below 6%. That has helped lift shares of homebuilders such as KB Home (KBH), Smith Douglas Homes (SDHC), and Lennar Corporation (LEN) higher Thursday. 

Bank of America analysts are bullish on the sector, raising their price targets for seven homebuilding companies by an average of 11%. The biggest boost went to KB Home, wh🎐ich had its price target bumped 20% to $90 from $75. Shares of the Los Angeles-based company rose about 3% Thursday.

Lower mortgage rates should drive more housing demand, the analysts wrote in a note Thursday, which should in turn improve sales and margins for homebuilders. Additionally, homebuilders have done a better job at returning capital 🐠to shareholders.

Lennar is expected to report earnings after the bell today. KB Home will report on Sept. 24.

August 澳洲幸运5开奖号码历史查询:existing-home sales fell, according to fresh data.