A D.R. Horton home building project is pictured in San Marcos, California July 28, 2015.
A D.R. Horton said it can manage current market conditions Reuters / Mike Blake

The biggest homebuilder in the U.S. is predicting an increase in its sales despite mortgage rates at the highest level in more than two decades.

D.R. Horton forecasts revenues in a range of $36 billion to $37 billion in the fiscal year that started in October. That would represent an increase of as much as 28% from $35.5 billion in the fiscal year of 2023, which ended in September.

The company sold 82,917 homes in the year, according to a statement released Tuesday. For the next fiscal year, it expects to sell 86,000 to 89,000.

"Despite continued higher mortgage rates and inflationary pressures, our net sales orders increased 39% from the prior year quarter, as the supply of both new and existing homes at affordable price points remains limited and demographics supporting housing demand remain favorable," Chairman Donald R. Horton said in the statement.

"We are well-positioned to meet changing market conditions with our affordable product offerings and flexible lot supply and are focused on turning our inventory to maximize returns and capital efficiency in each of our communities,'' he added.

Earnings per share for the quarter ended in September fell 4.7% from a year earlier to $4.45. That figure surpassed analysts' estimate of $3.93, Reuters reported, citing LSEG data.

As of the week ending Nov. 2, the average 30-year fixed mortgage rate in the U.S. fell to 7.76% from 7.79%, but still close to the highest levels since December 2000.

Higher mortgage rates have led to homebuyers delaying their purchases. Additionally, homeowners who secured lower rates have refrained from listing their properties, resulting in reduced inventory and upward pressure on prices.

On Oct. 24,PulteGroup, the third-largest U.S. homebuilder, said that robust interest from Americans in home purchases led to increased profits and sales. President and Chief Executive Officer Ryan Marshall emphasized that the strong fundamental desire for homeownership persists, while the housing supply remains limited.