NEW YORK ( TheStreet) -- Lennar ( LEN) will report earnings on Tuesday and TheStreet's Jim Cramer told Brittany Umar he'll be watching because it could be a good indicator for the rest of housing.
After mortgage rates violently moved higher earlier in 2013, a lot of deals started to fall through, according people he's talked to in real estate, Cramer said. When listening to Lennar's conference call tomorrow, he wants to hear the results for the past three months as well as the cancellation rates. Cramer said that although some homebuilders have blamed lack of inventory as a reason for a drop in home sales, the lack of traffic from prospective buyers is certainly a contributing factor. According to Cramer, many buyers likely feel they missed their great chance to buy when mortgage interest rates were lower, or they did not lock in their rate and are now holding back. Thus, Lennar earnings will shed some light on how the housing market is doing, he said. Cramer added the Federal Reserve's decision to hold off on tapering its bond purchases should help lower rates and could wind up saving the housing market. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell