The leading home-builder stocks were once again very strong in Monday's trading session. This important industry group has been very strong since October 4, 2011. Obviously, the low interest rate environment is a positive for the home-builder stocks. Yesterday, leading home-builder stock Lennar Corp (LEN) is trading higher by $1.00 to $38.31 a share. This stock continued to hold up very well on the daily chart forming a five week bullish base. Short-term traders should watch for intra-day resistance around the $38.80 level.
Some other leading home-builder stocks that are trading higher today include Toll Brothers Inc (TOL), KB Home (KBH), D.R. Horton Inc (DHI), and Beazer Homes USA Inc (BZH). This sector remains very strong on the charts. Traders should and must always keep a close eye on interest rates when investing in the home-builder stocks. Any significant increase in mortgage rates could effect the sector. The Federal Reserve has vowed to keep the Fed funds rate at zero to quarter percent until mid-2015, therefore, the home-buiders stocks could be in play for a while.