NEW YORK ( TheStreet) -- Homebuilder stocks have made many investors happy this past year with the homebuilder index delivering a 48% total return. However, that has changed since May 15 when the group began to slide, losing 10% in value over six weeks. The concern over rising rates has caused many to sell those positions over fears of slowing orders but these analysts seem to agree that the group has more life left in it.Goldman Sachs (GS) just initiated coverage on the group and splits its opinion. Analyst Eli Hackel thinks there will be modest upside (13%) to the homebuilder stocks over the next 12 months, but doesn't believe that all home builder stocks will rise equally. He advises buying builders that are exposed to markets with the best growth potential, which seems like good common sense. He also suggests buying the higher end because these people will have better access to getting mortgages and selling the lower end of the market. Those buyers will have more difficulty in obtaining a mortgage in this new tightened environment. Hackel does not believe rising rates will slow down the housing rally.
Analysts Not Worried About Rates For Builders
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