Homebuilders (PHM, KBH, LEN) Taking A Beating On Fannie Mae And Freddie Mac Worries
Today, Pulte Homes (NYSE: PHM) is trading down over 3% to $8.76. Pulte has fallen over 15% in the past two weeks. KB Homes (NYSE: KBH) is down over 4% and trading at $15.04. KB Homes has fallen 20% over the past two weeks. Lennar Corporation (NYSE: LEN) is trading down 5% to $10.34. Lennar has fallen close to 30% over the past two weeks.

Homebuilders (PHM, KBH, LEN) Taking A Beating On Fannie Mae And Freddie Mac Worries
July 11, 2008
Today, homebuilders are falling as uncertainty surrounds Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). Fannie Mae is trading down 38% and Freddie Mac is down 44%. There is wide speculation that the government may have to bail out these GSE's. Investors are nervous as to how the bail out would affect the mortgage market. Will it become more difficult than it currently is to receive funds to buy homes? Loans have already become much harder to attain after many mortgage companies have closed shop or limited their product selection and if Fannie and Freddie falls, then what's next. The government has the motivation to keep the economy going, but the government will likely not be reckless in its lending activities.

Today, Pulte Homes (NYSE: PHM) is trading down over 3% to $8.76. Pulte has fallen over 15% in the past two weeks. KB Homes (NYSE: KBH) is down over 4% and trading at $15.04. KB Homes has fallen 20% over the past two weeks. Lennar Corporation (NYSE: LEN) is trading down 5% to $10.34. Lennar has fallen close to 30% over the past two weeks.

Lennar Corporation is a homebuilder and a provider of financial services.
Pulte Homes, Inc. is a holding company that, through its subsidiaries, is engaged in the homebuilding and financial services businesses.
KB Home is a builder of single-family homes, townhomes and condominiums.
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