Bank of America downgrades Lennar and Toll Brothers, warns homebuilders face a valuation crunch

A contractor stacks roofing materials while working on a home under construction at the Toll Brothers Bowes Creek Country Club community in Elgin, Illinois.
Daniel Acker | Bloomberg | Getty Images

After a boom period of low rates and high demand, it may be time to take a more critical look at homebuilding stocks, according to Bank of America.