(Sept 16): Lennar on Wednesday reported third-quarter profit that more than halved as persistently high mortgage rates weighed on demand ​for new homes.

The Miami, Florida-based homebuilder's shares fell 3% after ‌the bell.

Third-quarter profit came in at $283.9 million, or $1.19 per share, compared with last year's nearly $591 million, or $2.29 apiece.

CEO Stuart Miller said ​the quarterly profits that came "below expectations" reflected the ​challenging economic environment, "which has deteriorated" since last quarter.

Like ⁠its peers, Lennar continues to grapple with a prolonged ​affordability crunch as mortgage rates neared 7% during the ​quarter and weakening consumer confidence prompted buyers to postpone home purchases, slowing demand across the new-home market.

During the quarter, U.S. homebuilder sentiment ​fell in June and July before unexpectedly ticking higher in August amid ​economic uncertainty and steep building costs aggravated by the U.S.-led war ‌with ⁠Iran.

"Rates are responding as inflation remains above the Fed's target, driven by geopolitical tension and higher oil prices," Miller said.

This week, a Reuters poll of property experts showed that ​U.S. mortgage ​rates will stay ⁠higher than previously forecast and decline only modestly over coming quarters, keeping home price ​growth muted through next year.

Lennar expects the ​average ⁠sales price in the next quarter to range between $370,000 and $380,000 per unit, compared with analysts' estimate of $383,610, according to ⁠data compiled ​by LSEG.

For the quarter ended ​August 31, total revenue fell over 8% from a year ago to $8.05 ​billion.

Uploaded by Siow Chen Ming