BUZZ - U.S. homebuilder stocks rise after Democrats secure a full victory in congressional elections

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November 4 - ** As the Democratic Party wins the majority of seats in both the Senate and House in the midterm elections, U.S. homebuilder stocks rise (link)

** D.R. Horton (DHI.N), Lennar (LEN.N), and PulteGroup (PHM.N) shares gain 7% to 8%

** Industry peers KB Home (KBH.N) and NVR (NVR.N) shares increase about 9%

** Home improvement chains Home Depot HD.N rises 5%, Lowe's LOW.N and Masco Corp MAS.N up about 7%

** UBS says Democratic control of Congress could increase the likelihood of lower tariffs on building materials

** Brokers estimate tariffs add about $7,500 to the cost of a new home, so lower tariffs could improve housing affordability

** Further expansion of state and local tax deductions could increase disposable income and support housing demand, especially in high-tax states

** Additionally, the “Increase Housing Supply Act” and the “First-Time Homebuyer Affordability Act” are expected to boost housing turnover and improve affordability for first-time buyers, benefiting homebuilders

** Including today's gains, the PHLX Housing Index .HGX is up 1.8% year to date

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