Veronica Dagher

Hey listeners, it's Friday, February 20th.

I'm Veronica Dagger for The Wall Street Journal.

And this is What's News in Earnings, our look at some of the biggest themes standing out this earnings season.

The U.S.

housing market is entering the 2026 spring selling season in an uneasy equilibrium.

Mortgage rates have settled into a new normal, about 6%.

But for many, the American dream feels further away than ever.

The nation's biggest home builders are telling different stories about the housing market.

This week, Toll Brothers reported a jump in profit fueled by luxury buyers.

Meanwhile, the entry-level builder, D.R.

Horton, is shrinking home sizes and piling on incentives just to keep first-time buyers in the game.

And Pulte Group is highlighting the country's growing geographic divide.

Joining me to break down what all this means for the housing market is WSJ national housing reporter Nicole Friedman.

Nicole, let's start with this geographic divide.

Pulte Group is seeing a notable split.

Demand in Florida was improving, but cooling for families in the West.

How does what the company is saying reflect different housing trends across the country?

So affordability is such an issue across the board.

And builders are looking for ways to engineer through this affordability crisis.

For example, D.R.