(Reuters) - D.R. Horton (DHI) forecast 2025 revenue and home deliveries below estimates on Thursday, as mortgage rate volatility kept some home buyers on the sidelines and the builder retained discounts to whip up demand.

Shares of the largest U.S. homebuilder fell about 8% in premarket trading, after it also missed estimates for fourth-quarter profit and revenue. The results pulled down shares of other homebuilders, with Lennar (LEN) and PulteGroup (PHM) down more than 3%.

Both those companies had, however, beat quarterly estimates on strong sales despite discounts.

After the U.S. Federal Reserve began its monetary easing cycle with a 50-basis-point interest rate cut in September, some prospective buyers are waiting for rates to potentially go lower in 2025, D.R. Horton said.

An affordability crisis also persists as median prices remain elevated due to a chronic shortage of homes in the United States.

This has forced large homebuilders to give more discounts despite elevated land and material costs.

Among the most popular discounts are mortgage rate buydowns, which function as a temporary or permanent reduction in the home loan rate.

D.R. Horton has also continued to build homes with smaller floor plans to keep prices stable.

For the fiscal year ending in September 2025, the company expects to deliver 90,000 to 92,000 homes. Analysts on average were expecting more than 94,000 home deliveries, according to data compiled by LSEG.

The Arlington, Texas-based builder also expects full-year revenue of $36.0 billion to $37.5 billion, below estimates of $39.41 billion.

For the fourth quarter ended September, the company reported earnings per share of $3.92, below estimates of $4.17 and last year's $4.45, despite selling more homes than in the previous year.

Its consolidated revenue of $10 billion was 5% lower than last year, primarily due to sales weakness in the company's single-family rental operations. It missed estimates of $10.2 billion.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Devika Syamnath)