Building permits and housing starts for the month of November both came in below economists' expectations. But shares of Lennar (LEN) - Get Report  were higher on Friday, despite the broader stock market trading mostly in negative territory. 

Before the market opens on Monday, Lennar will report its fourth-quarter earnings results. 

The company will likely tell a positive story, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said from the floor of the New York Stock Exchange Friday. But that might not matter, because interest rates have gone up so much. 

Cramer explained that when interest rates go up, it pulls mortgage rates higher. Higher rates means it's more expensive to finance a house. 

It doesn't help that the recent homebuilding numbers came in below expectations. There are also regulatory concerns and credit score issues. But the hope is a Trump Administration will lead to further housing expansion, Cramer added. 

Shares of Lennar are currently down 10% on the year, but are up a whopping 133% over the past five years.

Image placeholder title

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.