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Traders look at housing trades that are building up for the new year

With the SPDR S&P Homebuilders ETF climbing about half a percent Monday, the "Fast Money" traders weighed in on housing stocks building up for 2017.

Trader Brian Kelly noted that even though housing starts fell below estimates last week, 2017 could be the year for homebuilders to break out. The sector's climb reminded him of another big performer from 2016.

"The homebuilder is set up similar to how the financials did last year where this could be a big breakout trade if you have that economic growth that's going to push people in homes," he said.

Trader Karen Finerman said she's not concerned about the move in the homebuilders ETF. She attributed it to the end of the election and the end of uncertainty.

As the low-end buyer in the sector, KB Home has the potential to be a strong stock next year in the face of regulation rollbacks from the Trump administration, trader David Seaburg said. Even thought the stock is up 33 percent year to date, Seaburg said it still has room to grow, while the high-end Wall Street banks are going to continue to have problems with regulation.

"I like the KBH. Even though it's up strong, I think it continues," he said.

Disclosures:

GUY ADAMI

long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.

KAREN FINERMAN

long AAL, BAC, BAC short calls, C, DAL, FB, FL, GLMP,, GOGO, GOOG, GOOGL, JPM, LYV, KORS, KORS calls, KORS puts, M, MA, SEDG, SPY puts, TACO, UAL, URI, WIFI long call spreads. Her firm is long ANTM, AAPL, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, PLCE, SPY puts, URI, WIFI, her firm is short IWM, MDY. Karen Finerman is on the board of GrafTech International.

BRIAN KELLY

long Bitcoin, TLT, US30Y. He is short EUR=.,AUD,GPB

DAVID SEABURG

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. David Seaburg and Cowen have a financial interest in EDIT.Diamond Offshore: an employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore