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Will 7% Mortgages Hurt Pulte?
By Lawrence Meyers
March 8, 2005

Homebuilders have been on a tear during the housing boom. Look at the five-year charts of Pulte Homes (NYSE: PHM), Centex Corp (NYSE: CTX), D.R. Horton Inc. (NYSE: DHI), and Lennar (NYSE: LEN), and you'll see pretty much the same thing: stocks that have become eight- or 10-baggers over that period.

Investors who saw the demand for houses rising in the late '90s wisely targeted the homebuilding industry for their funds and have done quite well. But, as I wrote about earlier, the big question on everyone's mind is: How long can the party last? Granted, this is the question people have been asking for years, even as home prices continue to defy gravity and grow 20% annually in places such as Southern California...
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