Has Housing Bottomed?
New data leaves some investors wondering, has housing bottomed?
Specifically, a just released government report shows new home sales rebounded -- growing at their fastest pace in 10-months.
And data released earlier in the week showed existing homes sales rose at their fastest pace in nearly six years.
And there’s even more good news for the housing market. The Mortgage Bankers Association said applications for home loans jumped last week as interest rates hit record lows after the Federal Reserve announced it would buy longer-term U.S. government debt.
And that makes us wonder – has housing bottomed?
Some realtors are starting to see a light at the end of the tunnel. Small-town Texan realtor Rick Cumins tells us after a long dry-spell, "I've got two pending closings in April.”
The Fast Money desk, however, is mixed.
“I’m a skeptic,” says Dylan Ratigan. “The uptick has everything to do with people buying houses ahead of the summer, so they can move in July or August and not pull their kids out of school.”
“But affordability comes into play,” counters Guy Adami. “As mortgage rates come down it makes homes easier to buy.”
Pete Najarian is on the fence.
“It seems to me that prices are down and people are starting to buy. That’s good for buyers and good for all the stocks in the XHB,” he muses. Top holdings in the XHB include Bed Bath & Beyond, Home Depot and Sherwin Williams.
Najarian has one more thought. "It’s good for everyone except for the sellers. The lower prices are no good for them!”
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Trader disclosure: On Mar. 25th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Macke Owns (AAPL), (POT), (WMT), (MOS), (GE), (SDS); Macke Is Short (BRK.b); Seymour Owns (AAPL), (BAC), (FXI), (TTM), (AUO), (WBD); Najarian Owns (C) Call Spread;Najarian Owns (AGN) Call Spread; Najarian Owns (AAPL) Call Spread: Najarian Owns (BX) Call Spread: Najarian Owns (GD) Call Spread: Najarian Owns (MS) Call Spread: Najarian Owns (PALM) Calls; Najarian Owns (RHT) Calls; Najarian Owns (XHB) Call Spread; Najarian Owns (SWY) Calls; Najarian Owns (XLI); Najarian Owns (STX) Calls; Najarian Owns (WDC) Call Spread