Lennar: Recovery Hopes Overly Optimistic (Downgrade) (LEN)

Core Viewpoint - Lennar Corporation (LEN) shares have underperformed over the past year, losing over 20% of their value, primarily due to the Federal Reserve pausing its rate-cutting cycle and persistently high mortgage rates [1] Company Performance - The significant losses in Lennar's stock value occurred late last year, indicating a direct correlation with macroeconomic factors such as interest rates and mortgage costs [1] Market Context - The current economic environment, characterized by high mortgage rates, has negatively impacted the housing market and companies like Lennar, which are sensitive to these changes [1]