By John Spence

BOSTON (Dow Jones) -- Home-builder stocks traded lower Monday after announcements on an economic stimulus package and a plan to help troubled banks were pushed back. Wall Street analyst downgrades also contributed to the selling, though Beazer Homes USA Inc. rallied after the company reported a narrower quarterly loss.

Lennar Corp. shares were down about 4% after Citigroup analysts cut their rating on the stock to hold from buy. In a research note, they said the recent outperformance of the stock relative to the builder group has put Lennar's risk and reward profile in balance.

Citi added the "Minkow Effect" on Lennar's stock price appears to be diminishing. Barry Minkow, the co-founder of Fraud Discovery Institute, has made fraud allegations against Lennar and accused the home builder of treating its joint ventures like a Ponzi scheme. Lennar has denied the accusations and is battling Minkow in court.

Although Lennar shares dropped about 20% on Jan. 9 when Minkow made his initial allegations, "we note that Minkow's subsequent press releases have largely not impacted the stock," the Citi analysts wrote. "While we think the 'Minkow Effect' is fading, and while we think that his allegations against Lennar are unfounded, we note that headline risk for Lennar remains elevated."

Citi upgraded Lennar to buy in late January, saying the fraud accusations were likely groundless.

Elsewhere in the builder sector, shares of Pulte Homes Inc. were off 6% after Credit Suisse downgraded the stock to underperform from neutral. The iShares Dow Jones U.S. Home Construction Index Fund , an exchange-traded fund tracking housing stocks, was down nearly 2%. Investors had been hoping for news on Monday on the government's plans to jumpstart the economy and the banking system.

However, shares of Beazer Homes USA Inc. rallied as much as 30% on Monday after the Atlanta-based builder reported a smaller quarterly loss.