Argus analyst Chris Graja lowered his price target on D.R. Horton to $47 and also reduced his long-term earnings growth rate assumption to 9% from 12% to reflect the declining housing affordability from the recent home price appreciation and higher mortgage rates. The analyst anticipates the 30-year mortgage rates to reach as high as 5.15% in 2019 and 2020, adding that while this may not "crush the housing market", it suggests that home price appreciation will be stalled by the slower growth of household income. Graja also lowers his FY19 EPS view by 15c to $4.30, keeping his Buy rating but noting that it may be cut if his earnings outlook or price target are reduced any further.