U.S. home loan demand fell for a third week, though fixed mortgage rates slid near all-time lows. More information on the housing sector will be learned throughout this week, as existing and new home sale data will be reported Thursday and Friday, respectively. Buck Horne, housing and real estate analyst at Raymond James, shared his insights on the sector.
“We think housing is forming a very rocky bottom, but we think there is an opportunity where if we get a little bit of modest economic and jobs growth, it’s not going to take much to lift housing off of these bottoms,” Horne told CNBC.
Horne said he likes entry-level homebuilders, such as KBHome , MDC Holding and Lennar .
(KBHome is scheduled to report earnings on Friday morning.)
“Usually when housing forms a recovery, it starts from the bottom-up and not necessarily the top-down, so we’re looking for builders that are catering to the first-time buyers, that will grow faster and accelerate earnings growth quicker coming out of the trough,” he explained.
Scorecard—What He Said:
- Horne's Previous Appearance on CNBC (May 25, 2010)
More Housing Buzz:
- Cramer: A Housing Play for Bulls and Bears?
- Housing 'Expectations' Shifting Due to Stimulus
- The CNBC Home Traffic Report
CNBC Data Pages:
No immediate information was available for Horne or his firm.