Truman Patterson: Hey, good morning, everyone. Thanks for fitting me in. First, this has been touched on a little bit earlier in the call, but just trying to get a big picture overview of the banking environment and what it means for Horton. Has the banking environment currently negatively impacted your developer partners kind of outside of 4 Star, their ability to access capital for future projects? For smaller private builders, are you actually seeing them kind of pull back on spec construction, land deals, et cetera?
Mike Murray: I think with a lot of the third-party developers we work with, we have a long relationship with them. And in a lot of cases, their banking or financing sources are kind of looking through their developer, looking through to the land contract and working with us and they take great comfort in that. And we’ve been able to continue to sign up new deals over the past quarter that have secured new financing commitments for the third-party developers through the process. Is it as easy as it was or as inexpensive as it was? Certainly not. It is more challenging. I do think that the banking industry is being more selective in who and at what levels they’re choosing to support third-party developers. On the private builder side, we’ve probably seen a little more opportunity to step into some positions and help those builders with some liquidity and opportunities by taking some of their lots or stepping into different positions.
So, it has been, if anything, a bit accretive to the business, and we’re just here to help.
Truman Patterson: Perfect. Thank you. And then, you all have discussed previously about rotating to smaller square footage offerings to combat affordability. Any way you can help us think about — are you seeing consumers actually prefer these smaller square footage homes over the past six months? Or based on the offerings that you have out there, are consumers still kind of preferring the larger square footage homes?
Jessica Hansen: They prefer what they can afford. So, what we generally see is that buyers continue to want as much square footage as they can get, but they’re constrained by what they can afford, which is why we continue to start more and more of our smaller floor plans. We did see a slight tick down on a year-over-year basis again by about 2% in the terms of square footage on our homes closed. It was flat sequentially. So, we would expect just continued very gradual moves down in our average square footage today.
Truman Patterson: All right. Thank you, and good luck in ’24.
Jessica Hansen: Thanks, Truman.
Operator: Thank you. And the next question is coming from Rafe Jadrosich from Bank of America. Rafe, your line is live.
Rafe Jadrosich: Hi, good morning. Thanks for taking my questions. You mentioned that build cycles have come down 30 days from peak levels and you expect them to continue in the fourth quarter. Can you just talk about where they are now versus historical levels? And then, beyond the fourth quarter as you look into next year, how should we think about further potential improvement, like what that could do for your asset turns?
Paul Romanowski: Yeah, we are — today down that 30 days puts us at about five-and-a-half months in our current cycle time, which is still slightly above our historical averages. And so, we see a trend towards — more towards our normalized and consistent cycle times. That’s going to depend on labor availability and our ability to continue to aggregate that labor. As you see start space increase across the country, we could certainly see some pressure on that, but feel comfortable in our position and with the trade capacity that we have in labor out in the markets today.
