Berkshire Hathaway spent roughly $212 million to increase its Lennar stake, taking ownership to about the 10% threshold as U.S. mortgage rates hover near 7% and housing sentiment remains fragile. Berkshire is also pursuing a deal to buy Taylor Morrison, its first major transaction under new CEO Greg Abel. The moves come as elevated borrowing costs, inflation and higher household expenses make buyers more cautious. Lennar’s third-quarter adjusted earnings per share missed expectations at $1.23 versus $1.30, revenue fell 8.5% year over year to $8.05 billion, new orders declined 9% to 20,879 homes and gross margin narrowed to 15.8% from 17.5%. The company reduced full-year delivery guidance to 80,000 to 81,000 homes from 82,000 to 83,000. Lennar shares rose 6.35% on September 22 to $83.04 after the Berkshire disclosure, but remain about one-third below their January high. The iShares U.S. Home Construction ETF and SPDR S&P Homebuilders ETF are each down roughly 20% from their February highs. KB Home executive chair Jeffrey Mezger said rising borrowing costs and persistent inflation were making Americans more cautious about buying homes, while Lennar CEO Stuart Miller said higher fuel and electricity costs were moderating families’ willingness to make a major financial commitment. Lennar’s investment case remains sensitive to the 30-year mortgage rate, with affordability constraints and elevated incentives weighing against housing shortages, valuation support and Berkshire’s ability to hold through a prolonged cycle.