Toll Brothers Cracked McMansion

The American McMansion is beginning to crack. That’s the message from Toll Brothers, the country’s leading builder of luxury homes. On Tuesday, the company cut its forecast for new home sales next year. The admission sliced its stock price by some 12% and brought down shares of the entire homebuilding sector. This shouldn’t have been such a big surprise. After all, 30-year fixed-rate mortgage rates hit a 16-month high last week. And there is every reason to expect home borrowing to become more ...