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Housing Stocks Are Key to This Market

By Jim Cramer

 About this article:
 A perusal of the charts this weekend shows something surprising: The weakest group out there has been the homebuilders for several weeks now. KB Home, D.R. Horton, Lennar and Toll have simply been a horror show. What's going on here? How can these stocks be so dangerous when mortgage rates have crashed through 5%, the level that every banker I talk to says mortgages jump off the table and refinancings rush to be done. What's going on? This group's tracking more than just mortgage rates. It's tracking employment and news flow and both are terrible. Employment can easily be considered a broken record but you will not and can't buy a house if you are about to lose your job or have lost it. The reversal of the employment picture -- something that has surprised people -- is reason No. 1 for the group's underperformance. Second though,...

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