KB Home (NYSE:KBH) has seen shares drop by 2.1% this year amidst housing market weakness. Jim Cramer has tied the company’s performance to mortgage rates, suggesting a potential boost if rates decline. He emphasized caution in trading the stock until rate trends are clearer, highlighting the importance of lower rates.

CEO Jeff Mezger of KB Homes noted in a recent call that December historically isn’t a good time to sell homes due to margin impacts. The company’s stock has risen as investors see prudence in buying shares over building homes in a slow market. Cramer supports this approach, citing the need for lower mortgage rates.

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Read more at Yahoo Finance: Jim Cramer Reveals Why KB Home (KBH)’s Stock Is Up