Full Transcript: First American Financial Q2 2026 Earnings Call

First American's Housing Business Faces High Mortgage-Rate Pressure

First American Financial (FAF) is struggling with weak residential title activity as elevated mortgage rates suppress housing demand, with purchase revenues rising only 2% and closed orders declining 3% in Q2 2026. However, strong commercial title revenues (up 34%) and robust investment performance are offsetting residential weakness. Lower mortgage rates could serve as a catalyst for improved housing activity and earnings growth.

First American Financial shares are trading higher after Keefe, Bruyette & Woods raised its price target on the stock from $84 to $86.

Keefe, Bruyette & Woods Maintains Outperform on First American Financial, Raises Price Target to $86

Keefe, Bruyette & Woods analyst Bose George maintains First American Financial (NYSE:FAF) with a Outperform and raises the price target from $84 to $86.