D.R. Horton Inc. shares soared to a record high after the homebuilder reported a stronger-than-expected quarterly profit margin and expectations for lower mortgage rates lifted investor optimism.

The company’s gross margin for the quarter through June was 24%, according to Bloomberg Intelligence analyst Drew Reading. That beat D.R. Horton’s earlier guidance and the consensus of analysts surveyed by Bloomberg. The builder said it expects closings for 90,000 to 90,500 homes for its full fiscal year, which ends Sept. 30. The top end of that forecast also beat analysts’ expectations.

The shares surged 10% to an all-time high of $173.82 at 11:26 a.m. New York time.