BUZZ-UK housebuilders: Fears of rate rise impacts "overblown" - Barclays

** Barclays (LSE: BARC.L - news) says fears of rate rise impacts for UK homebuilders "overblown"; says rises of >150 BPS needed to breach long-term affordability ratios

** Says fundamentals are strong: attractive land buying market, close to record low mortgage rates, govt support ('Help to Buy' until 2021) and unemployment rate at a 4 decade low

** Reinstates Galliford Try with "equal weight" as house building division (Linden) returns improve, and recent unsuccessful bid on peer Bovis Homes (Frankfurt: 911164 - news) demonstrates desire to "bulk up"

** Ups Taylor Wimpey to "overweight" post recent underperformance; adds high dividend yield, and one of the highest ROACEs in the sector

** Cuts Countryside Properties to "hold" after strong performance (+40% YTD; +66% LTM); "a pure valuation call"

** McCarthy & Stone (Frankfurt: MCM.F - news) down to "underweight" because of greater reliance on 2nd-hand market (limited govt. support, weak conditions) -- one of two companies of 12 under coverage with the lowest rating (Bovis remains "underweight")

** Crest Nicholson (Frankfurt: A1KCZN - news) ("overweight") is sector top pick on strong balance sheet, central London exposure