Jim Cramer Says “Lennar Needs Lower Long-Term Interest Rates”

Lennar Corporation (NYSE:LEN) is one of the stocks on Jim Cramer’s radar recently. Cramer said that the company’s earnings “were not that good.” He stated:

“Needless to say, the earnings were not that good. Even worse, Lennar says their earnings for the current quarter are likely to come in below the expectation. And remember, Lennar is a fantastic company… They’re quite optimistic that stronger sales activity will come soon. So maybe you want to call it green shoots and that things can get better if rates continue to come down…

… Like everybody else in the industry, Lennar needs lower long-term interest rates. Usually, when the Fed cuts short rates, long rates will come down too, but that’s not always the case. Last fall, for instance, the Fed cut short rates and long rates skyrocketed. Worth keeping in mind. I mean, I know I’m very concerned that we could repeat last year’s fiasco as long rates are still creeping up higher after that last recent rate cut. That’s not good.”

Lennar Corporation (NYSE:LEN) builds and sells single-family and multifamily homes, develops residential land, and manages rental properties for buyers ranging from first-time to luxury. The company also provides mortgage financing, title, insurance, and closing services.

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Disclosure: None. This article is originally published at Insider Monkey.