Raymond James downgrades two homebuilders

|By:, SA News Editor

Standard Pacific (SPF -0.8%) loses its Buy rating, now a Hold, and KB Home (KBH +0.5%) is cut to Sell from Hold. Both stocks have moved neck and neck this year - ahead 4.6% YTD after major pullbacks since the Treasury market blew up in May.

RayJay also makes a couple of moves in the apartment REIT space, upping Equity Residential (EQR +0.1%) to a Buy while removing its Buy rating on Essex Property Trust (ESS -0.2%). It could be a valuation call after ESS has outperformed EQR by more than 1,000 basis points over the last year.