Falling mortgage rates could drive homebuilder stocks higher.

Berkshire Hathaway ( BRK.A 0.44% ) ( BRK.B 0.57% ) CEO Warren Buffett is rightfully known as the greatest investor of all time.

In more than 60 years at the helm of his conglomerate, Buffett has approximately doubled the annual return of the S&P 500 , leading to market-crushing returns for Berkshire Hathaway. Because of that history, investors pay close attention to Berkshire's stock holdings and purchases to glean insights into the market and top stocks to buy.

Berkshire's second-quarter purchases included some telling hints. One of the company's biggest purchases was Lennar ( LEN 2.04% ) , and it also added another homebuilder, D.R. Horton , and Pool Corp , a distributor of swimming pool supplie

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