KeyBanc downgrades Lennar, other homebuilders, says inflation and rate hikes will cause a pullback

A contractor carries boards through a house under construction at the Lennar Corp. Tree Tops community development in Lancaster, South Carolina, U.S., on Monday, Jan. 8, 2018.
Travis Dove | Bloomberg | Getty Images

As the Federal Reserve prepares to hike interest rates, it's time for investors to turn away from homebuilder stocks, according to KeyBanc.