CNBC's Jim Cramer on Tuesday said investors should not panic about February's "truly pathetic" housing starts number because the market is primed to bounce back.
Single-family home construction declined 8.7 percent last month to a 1-1/2-year low, but housing forecasts are looking better as mortgage rates decrease. The housing market is not flashing recession signals, he said.
"Don't be afraid of the hideous housing numbers. Be aware that this is a natural decline, which I think will be followed by an advance that you can profit from as housing enjoys its annual spring rebound," the "Mad Money" host said.
Cramer predicted home building will be stronger in March. The Federal Reserve's rate hike in December, despite Cramer's objections, made home prices and mortgages more affordable, and raw materials costs have fallen faster than housing prices, he said. The decrease on 10-year Treasury yields is also a "godsend for the industry," he added.
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