In 2012, the home-builder sector has been one of the leading industry groups in the stock market. Leading home-builder stock Toll Brothers Inc (NYSE:TOL) has rallied higher by nearly $19.00 since it’s October 4, 2012 low when the stock traded at $13.16 a share. This move higher in the stock and the sector is nothing short of dramatic. Obviously, extremely low interest rates by the Federal Reserve have helped to revamp the beaten down sector. Last week, interest rates increased by nearly 50 basis points and this could be one of the reasons why the home-builder stocks could be close to stalling out. In any case, a September correction in the home-builder sector should not be ruled out.
Lennar Corp (NYSE:LEN) is a leading home-builder that is trading lower today by 0.81 cents to $31.93 a share. Short term day traders should watch for intra-day support around the $31.73, and $31.16 levels. The daily chart will still have good support around the $28.00 area should LEN stock pullback further. Some other leading home-builder stocks that are retreating today include The Ryland Group Inc (NYSE:RYL), KB Home (NYSE:KBH), and D.R. Horton Inc (NYSE:DHI).