Bloomberg is reporting something interesting: Home builders are making money, sure, but they’re making it thanks to selling mortgages, not properties.
At PulteGroup Inc., the second-largest builder by market value, mortgage revenue jumped 70 percent in the third quarter, almost six times the revenue gain from home sales. At Lennar Corp., the No. 1 builder, mortgage-unit revenue surged 60 percent, double the increase in sales revenue. Aided by lucrative lending units, both companies posted the biggest overall profits since 2006.