DuPont de Nemours (DHI) reported a significant deterioration in housing demand, with net sales orders dropping 7% year-over-year to 18,619 homes in the latest quarter, while the cancellation rate climbed to 23% from 20%.
The company’s own filing attributes this shift to rising cancellations and falling orders, signaling that buyers are increasingly walking away from signed contracts due to affordability stress caused by elevated mortgage rates.
This pressure is compounded by market pricing suggesting a 63% probability of a Federal Reserve rate hike at the December 2026 meeting, which would likely push mortgage rates higher and further compress affordability.
Adding to the bearish case, sector peers are reporting similar trends; NVR recently noted that its cancellation rate rose to 21% from 19% year-over-year, confirming that the demand weakness is systemic rather than isolated to DHI.
The combination of declining orders, rising cancellations, and the potential for higher borrowing costs suggests DHI’s backlog is becoming less reliable as a forward revenue indicator.
Source: SEC EDGAR daily Form 8-K filing index, 2026-10-29
What would change this read
If the Federal Reserve shifts its stance to maintain rates at the December meeting, or if DHI’s next monthly orders report shows the cancellation rate dropping below 20% and net orders turning positive year-over-year, it would signal that the housing affordability stress is easing.
