M/I Homes posts record 2,387 new contracts as demand defies mortgage rates

M/I Homes reported a record 2,387 new contracts in Q2, a 15 percent increase from a year earlier, as demand defied higher mortgage rates.

The results reflect resilient buyer appetite in what management described as a "choppy" housing market, the company said. The homebuilder sold 4,737 homes in the first half of 2026, up 8 percent from the prior-year period.

The record quarter comes as mortgage rates remain elevated and economic uncertainty persists. Rival homebuilders including DR Horton and Lennar have also reported steady demand, suggesting that builders are capturing buyers priced out of the existing-home market due to the rate lock-in effect.

New contracts are a leading indicator of future revenue for homebuilders, as they typically convert to closings within one to three quarters. M/I Homes' 15 percent growth rate in Q2 accelerated from the 8 percent first-half pace, indicating momentum built through the spring selling season.

The company has not yet disclosed revenue, earnings per share, or gross margin for the quarter. Homebuilder margins have faced pressure from higher land development costs and incentive spending to offset mortgage rates, though volume gains have helped offset the drag.

The contract volume shows that homebuilders can still grow sales even as affordability constraints weigh on the broader housing sector. M/I Homes' next catalyst will be the release of full financial results, which will include revenue, earnings, and any updated guidance for the remainder of 2026.

This article is for informational purposes only and does not constitute investment advice.