FILE PHOTO: Workers install roof trusses onto a new house in Arvada, Colorado July 10, 2017. REUTERS/Rick Wilking

NEW YORK (Reuters) - Shares of several homebuilders look attractive as the U.S. housing market could strengthen further, Barron’s reported in its latest issue.

With strong demand, lack of inventory and modest annual price gains, industry observers see the recovery continuing for several years unless mortgage rates spike, according to the article.

The Spdr S&P Homebuilders ETF XHB.P has fallen 9 percent this year. Homebuilder shares recently traded for 10 times 2018 profit estimates, compared to the overall market's P/E ratio of 17, even though the companies are expected to have double-digit earnings growth this year and next, the article said.

According to Barron's, shares of Lennar Corp LEN.N, NVR Inc NVR.N and Meritage Homes Corp MTH.N look particularly attractive.

Last week, Lennar shares fell 2.6 percent, NVR dropped 3.3 percent and Meritage slid 4.2 percent, as the overall S&P 500 .SPX was off 2 percent.

Home improvement chain Lowe's Cos Inc LOW.N is also attractive, according to the article. Lowe's shares fell 12.5 percent last week as the company reported quarterly profit and margins well short of Wall Street estimates.