US homebuilder stocks have defied conventional wisdom about the effects of rising mortgage rates, rallying furiously and attracting an $814mn bet from Warren Buffett’s Berkshire Hathaway. Analysts are still bullish, too.

Shares in DR Horton, Lennar and NVR, which Berkshire disclosed it owned this week, have risen about a third apiece this year, far outpacing the S&P 500 stock index. Shares of rival PulteGroup have surged just over 80 per cent.

Mortgage rates have doubled in the past year and a half, raising the cost of financing a home. But rates have proved a blessing for homebuilders because their rapid rise has in effect trapped many current owners in their properties, reducing the stock of existing houses for sale and driving would-be buyers to new properties.