NEW YORK ( TheStreet) -- While there has been confusion about whether homebuilders are increasing or decreasing production, TheStreet's Jim Cramer tells Debra Borchardt what he is focusing on.

Lennar ( LEN) reported earnings on Tuesday morning, and Cramer will be looking for three major things in the conference call: cancellations, orders and traffic flow.

While production is about one-third of what it was in 2005-07, Cramer said if affordability and mortgage rates have played a role, it could result in another leg lower for the stock price.

However, if the move higher in rates didn't play a large role, it could boost Lennar, which is down 9% this year, and boost other homebuilders, too.

While mortgage rates are still relatively low on a historical basis, the move higher from just a few months ago was enough to turn prospective home buyers away, Cramer said.

He concluded that while there have been a few hot markets, particularly in California and New York City, many home buyers now feel like they have missed the boat.

-- Written by Bret Kenwell in Petoskey, Mich.

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.

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