Meritage Homes’ First-Time Buyer Model Meets Higher Rates as Dendur Capital Exits
The Motley Fool
by newsfeedback@fool.com (Eric Trie)February 22, 2026
AI-Generated Deep Dive Summary
Dendur Capital LP has exited its entire stake in Meritage Homes Corporation, selling 891,000 shares worth approximately $64.54 million. This move, revealed in an SEC filing on February 17, 2026, marks the fund’s complete disengagement from the builder, which had previously represented 6.7% of its assets under management (AUM). The sale underscores a shift in investor sentiment toward Meritage Homes, a company deeply tied to the housing market’s sensitivity to mortgage rates.
Meritage Homes operates at the most rate-sensitive end of the housing sector, primarily catering to first-time buyers. This demographic is particularly vulnerable to rising interest rates, which can strain affordability and dampen demand for new homes. Dendur Capital’s decision to fully exit its stake highlights the challenges faced by investors in navigating the current mortgage environment.
The timing of this exit raises questions about the sustainability of first-time buyer demand in a market increasingly impacted by higher borrowing costs. As Dendur Capital’s departure signals a potential reevaluation of risk exposure, other stakeholders are likely to assess whether Meritage Homes can maintain its growth trajectory amid these economic headwinds.
This development is significant for investors and financial analysts tracking the housing market and mortgage trends. It also serves as a reminder of how sensitive real estate sectors are to changes in interest rates, particularly those targeting first-time buyers. As the broader real estate and mortgage markets continue to evolve, Meritage Homes’ ability to adapt will be closely monitored by industry observers.
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Originally published on The Motley Fool on 2/22/2026