This morning, the leading home-builder stocks are declining lower at the start of the trading day. Many traders are now viewing the home-builder stocks as a sign that the Federal Reserve is going to being tapering it’s QE-3 program. Currently, the Federal Reserve is buying $85 billion a month worth of mortgage backed securities and U.S. Treasuries. Should the central bank decide to cut back on it’s aggressive mortgage backed securities purchasing it could hurt the home-builder sector.
Lennar Corp (NYSE:LEN) is one of the leading home-builder stocks in the industry group. Today, LEN stock is declining lower by $1.37 to $37.23 a share. Day traders can watch for intra-day support around the $37.00, and $36.42 levels. The daily chart has support around the $35.00 area should it fail to hold the recent low around $36.40.
Some of the leading home-builder stocks that are trading lower at the start of the trading day include Toll Brothers Inc. (NYSE:TOL), DR Horton Inc. (NYSE:DHI), KB Home (NYSE:KBH), and PulteGroup, Inc. (NYSE:PHM). Traders that want to track the entire home-builder sector can follow the iShares Dow Jones US Home Construction (NYSE:ITB).