Pimco's chief investment officer for global credit, Mark Kiesel, is bullish on the housing sector and he said Friday that "rising confidence" is why.
"The housing stock is aging and people are doing better," he said in an interview with CNBC's "Power Lunch." "The labor market is healthy and wages are picking up."
Housing is one of Pimco's highest-conviction investments now. That is motivated by a bullish view of banks, homebuilders, home improvement and building materials. Kiesel said he favors title insurance companies because he forecasts sales volumes to be up into the double digits soon.
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"Also homes have been rising in price now for the last three to four years, people are no longer under water and actually feel like putting money into their house. Yes, there will be more remodel activity going forward," he said.
Kiesel said he believes the housing cycle will continue for another two to three years. Pent-up demand from a younger generation, mostly living with their parents, could add to the boom, he said.