(Click for video linked to a searchable transcript of this Mad Money segment)
The Mad Money host had turned cool on these stocks. But he's warming up again.
That is, he thinks home builders are again buys - well almost.
"I had been waiting for something to inform me about housing demand after the 10-year Treasury almost doubled and mortgage rates went from roughly 3.5% to 4.85% in a matter of months," Cramer said.
Cramer has now found what he's been looking for. That is, he believes metrics from KB Home combined with commentary from Lennar during a Mad Money interview suggest home builders are again in play.
First citing commentary from Lennar, Cramer said:
"June, the first month of the rate impact rise, was very strong for this national homebuilder. July, however, seems like it was the exact opposite. August, however, came roaring back and it looks, between the lines, that September remained strong."
It would appear that the "rate hikes simply didn't hurt that much," Cramer said.
Results from KB Home also showed people continued to buy homes. According to KBH, the number of homes delivered increased 6% from the year-ago quarter to 1,825 homes.
And Cramer noted that interest rates are still historically low, which makes new homes still very affordable for many Americans.
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All told, Cramer concluded the spike in interest rates didn't ding the homebuilders to the degree the Street assumed that it had. Therefore, "This group, and all of its accoutrements, can be owned again."
However, and this part is important, Cramer isn't not a buyer until the debt issue is resolved. "I think the home builders can be a go to industry once we see the whites of the budget fight's eyes. Too risky before that, even with the facts on your side."
Call Cramer: 1-800-743-CNBC
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