According to CNBC, Melius Research initiated coverage of the housing sector with a buy rating and a $397-per-share price target on Home Depot. The analysts said they expect existing-home supply to keep rising over the next 2-3 years, which they believe could lift existing-home sales and repair-and-remodel demand, while new-home supply remains a headwind. Melius also said it likes Lowe's, rates Toll Brothers a buy, and has sell ratings on D.R. Horton, KB Home and Lennar. The note said 50% of homeowners are now in sub-4% mortgages, down from 61% three years ago, while 22% have mortgages above 6%, up from 10% three years ago.