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If you raise interest rates 17 straight times, it begins to have an impact. Today Lennar (LEN) became the latest homebuilder to slash its profit forecast. Last week, Beazer Homes USA (BZH) and KB Home (KBH) both slashed their forecasts.

Lennar now says it’s going to earn $1.25 to $1.35 a share for the quarter. This is a big cut from the earlier forecast of $1.90 and $1.95 a share. For the full year, Lennar sees earnings of $8 to $8.25 a share, which is down from its previous forecast of $9.25 a share. I have a feeling we’re going to see more earnings warnings in the months ahead.

Over the past year, the homebuilding sector has been absolutely mauled. The index is down nearly half from last year’s peak.

Posted by edelfenbein at September 8, 2006 12:57 PM