D.R. Horton reported strong performance in the first quarter of 2025, surpassing analyst expectations with $7.6 billion in revenue for the quarter ending December 31, 2024. The company's capture rate for home sales, where DHI Mortgage handled financing, stood at 79%, indicating that most customers are opting for the builder's lender. The share of first-time homebuyers (FTHB) rose to 60%, while FHA and VA loans accounted for nearly two-thirds of sales. However, the CEO noted that rising inventory levels in Florida and Texas are impacting sales, as homebuilders in these regions are investing heavily in incentives. Additionally, land prices have increased by 10% year-over-year, closely aligning with the national average increase of 11%. Experts predict that the higher mortgage rate environment will keep existing home sales near their lowest levels in three decades, although slight improvements in affordability are expected as income growth outpaces home price and rent growth.