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With the recovery in housing markets, most homebuilders are investing heavily in building homes to cash in on the hike and NVR Inc. (NVR - Snapshot Report) is not lagging. Recently, it unveiled single-family home sites at Walden Pointe in Plant City, FL.

Priced at $190,000 and upwards, the homes, part of NVR's Ryan Homes division, are built as per the new Sandpiper Point single-family models. The one-storied homes have four bedrooms, an owner's suite with a personal bath and a walk-in closet.

With the recent improvement in economic conditions and the housing market in general, mortgage/interest rates have started normalizing since May 2013. This has raised concerns among some analysts. High interest rates dilute the demand for new homes, as mortgage loans become expensive. Subsequently, the buyer’s purchasing power is lowered, thereby, affecting revenues and profits of the homebuilders.

Other Stocks to Consider

Currently, NVR carries a Zacks Rank #4 (Sell). Other stocks in the construction sector that are performing well and deserve a mention include Boise Cascade Co. (BCC - Snapshot Report), Ryland Group Inc. (RYL - Snapshot Report) and Standard Pacific Corporation. (SPF - Snapshot Report). While Boise Cascade has a Zacks Rank #1 (Strong Buy), Ryland and Standard Pacific carry a Zacks Rank #2 (Buy).

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