|Home-Builder Optimism Hits a 20-Year High. One Bull Says Buy Lennar, Beazer, and 2 Other Stocks|
Home builders haven’t been this optimistic in two decades.
“The current reading of 76 is about as good as it gets,” said Ward McCarthy, chief financial economist at Jefferies.
Watching this closely along with yield curve and oil prices. Home builders stocks lead by 2 years MOL downturn in economy. All looking rosy for now. Seeing lots of new construction especially starter homes, job creation continues job market very tight along with very low rates fueling demand, 97-98% LTV financing especially FHA getting millenials into these starter and mid market priced homes FINALLY (for better or for worse longer term?). More and more we will be sensitive to a backup in longer term rates. Perhaps 10 year treasury back above 3% for an extended period of time will do it?