Whitney Tilson: Short Homebuilders

Monday, 24 May 2010 | 6:38 PM ET

The housing market is on a “precipice” and it’s unclear which way it’ll tip, Whitney Tilson of T2 Partners said on Monday’s Fast Money.

Best known for predicting the mortgage meltdown, the widely followed money manager said low mortgage rates are the main thing supporting the housing market right now.

And with mortgage rates at historic lows, we thought it was a good time to get his outlook on the broad housing sector.

So what moves is he making?

Tomorrow's Headlines Tonight
The three headlines that can make you money tomorrow, Whitney Tilson, T2 Partners.

Like he told us in May of 2009, Tilson is still playing the homebuilders short; he thinks they are in trouble. Although home sales and affordability are good, he's more concerned that 8 million people aren’t paying their mortgages.

If those homeowners are forced into foreclosure it will created a glut of inventory in the real estate market. "A wave of foreclusure would drop housing prices and that's a bad scenario for homebuilders," he says.

For more on Tilson’s take on the housing market, watch the video here.

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

CNBC.com with wires


Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report