Brokerage firm JPMorgan weighed in on the housing sector today, issuing an upgrade to Lennar Corp. (LEN: sentiment, chart, options) and simultaneously downgrading Pulte Homes (PHM: sentiment, chart, options). Starting with LEN, the equity was bumped up to "overweight" from "neutral," thanks to its above-average core profitability. JPMorgan expects that LEN's 2009-end book value will contract by just 13%, compared to a sector average of 19%.

As for PHM, the stock was dropped from "overweight" to "neutral" following a recent surge in the share price -- up 85.7% from its Nov. 21 low. Additionally, the brokerage expects that PHM will suffer a larger-than-average 2009-end book value contraction of 29%.

Following today's analyst actions, LEN is up 2.7% and PHM is off 2.7%. However, the major mover in the homebuilding sector today is Hovnanian Enterprises (HOV), which is up 9% to $2.29 at midday.