NEW YORK (TheStreet) -- While there have been some mixed signs in the housing market, TheStreet's Jim Cramer explains to Debra Borchardt that there's one data point that tells the whole story.
Home prices are up, and
said it's selling houses at the high end of the range. But Cramer said that as long as mortgage applications continue to trend lower, so will housing.
He added that the homebuilders have been too optimistic and that a glut of housing inventory could be beginning to form.
Falling mortgage applications is a sign that consumers aren't buying housing and feel that they've missed the boat on lower rates.
Cramer went on to say that while mortgage rates are still low historically, the violent rise over the past four months has pushed a lot of consumers to the sidelines.
Although housing has been the fuel for a recovering economy, he said a whole new group of stocks could lead the way from here, Specifically, those with international exposure should do well, especially with Europe in recovery mode.
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, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.