Homebuilding Sector

As you probably know by reading the headlines, the homebuilding sector continues to show amazing strength. It now appears that this month's news from Ryland (RYL) was nothing but a headfake. The bottom line is the low interest rates will continue to help these stocks move higher, especially when you look at the housing starts, building permits, and applications for mortgages data this morning. The two stocks I like in this group, although I currently do not own either one, are Toll Brothers (TOL) and Brookfield Homes (BHS).