BofA lowers US homebuilder's PT on sluggish demand and policy uncertainty

** BofA lowers PT on multiple U.S. homebuilder's on sluggish demand and policy uncertainty; maintains ratings

** Says homebuilders cannot solve affordability alone given the resale home market is much larger than new build (only 27% of inventory)

** "Recent commentary suggests the administration will also examine supply solutions, which could have negative implications to homebuilder stocks," BofA says

** Brokerage says housing affordability has hovered near the lowest level in history over the last three years as home prices (+45% since 2020) and mortgage rates (+418 bps) have surged

relative to incomes (+23%)

** Following are the PTs: