Lennar cuts forecast amid tough housing market

NEW YORK (Reuters) - Lennar Corp. , the No. 3 U.S. homebuilder, on Friday cut its third-quarter profit forecast due to a deteriorating housing market, sending its shares down nearly 3 percent in premarket trading.

The Miami-based company is at least the third major U.S. homebuilder this week to forecast profits below analyst outlooks as the U.S. housing market cools.

Almost all of the major builders have been releasing these reports this week, and nothing looks positive. What is surprising me is that KB homes stock price dropped 5%, Lennar is dropping 3%... but why? Is there still a profit to be made buying put options (or "shorting") the builders? I didn't think so, but was wrong.

It is likely the builders are slowing down on the building now, at least. That is good for us homeowners.