This morning, most of the leading home-builder stocks are declining lower on the trading session. This important industry group has been one of the leading and strongest stock sectors in the market since October 2011. Recently, the leading home-builder stocks have been stalling out on the charts. In all fairness to the home-builder stocks a correction is common after such a large advance over the past year.
Lennar Corp (NYSE:LEN) is considered to be one of the leading home-builder stocks in the market. Today, LEN stock is trading lower by $1.01 to $39.01 a share. This stock has been pulling back since March 20, 2013 when it peaked at $41.74 a share. Short term traders should watch for intra-day support around the $38.35 level. The daily chart for LEN is showing good support around the $36.50 area.
Some leading home-builder stocks that are declining lower today include Toll Brothers Inc (NYSE:TOL), Hovnanian Enterprises, Inc. (NYSE:HOV), The Ryland Group, Inc. (NYSE:RYL), and Beazer Homes USA, Inc. (NYSE:BZH). This important sector is being supported by the Federal Reserve which is buying $45 billion a month in mortgage backed securities. Many private equity firms are also buying single family homes which is taking the inventory levels down for the banks. These efforts have certainly helped to stimulate the housing stock sector since late 2011.