Lennar (LEN) Downgrade is Due to High Rates, Says Jim Cramer

Core Viewpoint - Lennar Corporation (NYSE:LEN) has faced challenges in the homebuilding sector, with its shares remaining flat over the year but showing a 15% increase year-to-date. The company is dealing with inventory clearance issues, which have led to downgrades from financial firms [2][3]. Group 1: Company Performance - Lennar's shares are flat over the past year but have increased by 15% year-to-date [2]. - The company sold a stake in its multifamily business to TPG, which also committed an additional $1 billion [2]. - Citizens Financial downgraded Lennar's shares to Market Perform from Market Outperform following its fiscal fourth quarter earnings report, citing inventory clearance concerns [2]. Group 2: Market Conditions - UBS downgraded Lennar's rating to Neutral from Buy, linking the downgrade to high interest rates affecting the housing market [3]. - Jim Cramer highlighted that the high interest rates are a significant barrier for starter homes, indicating a lack of traction in the housing market [3].