filings.toolsItem 3. Quantitative and Qualitative Disclosures About Market Risk
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks related to fluctuations in interest rates on our investments, debt obligations and loans held-for-sale. We utilize forward commitments and option contracts to mitigate the risks associated with our mortgage loan portfolio. Since November 30, 2024, there have been no material changes in market risk exposures associated with interest rate risk.
In May 2025, we issued $700 million in aggregate principal amount of 5.20% senior notes due 2030.
In May 2025, we paid off $500 million aggregate principal amount of our 4.75% senior notes due May 2025.
As of August 31, 2025, we had $1.1 billion of outstanding borrowings under our Credit Facility.
As of August 31, 2025, our borrowings under Financial Services' warehouse repurchase facilities totaled $1.7 billion under residential facilities and $57.3 million under LMF Commercial facilities.
Information Regarding Interest Rate Sensitivity
Principal (Notional) Amount by
Expected Maturity and Average Interest Rate
August 31, 2025
| Three Months Ending November 30, | Years Ending November 30, | Fair Value at August 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homebuilding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Notes and other debt payable: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed rate | $ | 16.1 | 438.9 | 1,198.6 | 10.1 | 11.5 | 702.4 | 12.0 | 2,389.6 | 2,422.3 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | 3.3 | % | 5.1 | % | 4.9 | % | 3.0 | % | 7.5 | % | 5.2 | % | 6.6 | % | 5.0 | % | — | ||||||||||||||||||||||||||||||||||||
| Variable rate | $ | 1,140.0 | — | — | — | — | — | — | 1,140.0 | 1,140.0 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | 5.4 | % | — | — | — | — | — | — | 5.4 | % | — | ||||||||||||||||||||||||||||||||||||||||||
| Financial Services: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes and other debt payable: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed rate | $ | — | — | — | — | — | — | 123.6 | 123.6 | 124.1 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | — | — | — | — | — | — | 3.4 | % | 3.4 | % | — | ||||||||||||||||||||||||||||||||||||||||||
| Variable rate | $ | 848.6 | 891.6 | — | — | — | — | — | 1,740.2 | 1,740.2 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | 5.9 | % | 5.7 | % | — | — | — | — | — | 5.8 | % | — | |||||||||||||||||||||||||||||||||||||||||
For additional information regarding our market risk refer to Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our 2024 Form 10-K.
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