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No. 3 - Housing Rebound?

Is the worst housing slump in 15 years over? New data reveals builders broke ground on more new homes in March than expected, and the SPDR S&P Homebuilders ETF (XHB) turned higher in anticipation of the pop. What’s the play?

Guy Adami believes the housing market is nearing its lows. He recommends investors buy KB Homes (KBH) because their cancellation rate is going down. He also likes Toll Brothers (TOL) in the sector.

Eric Bolling couldn’t disagree more. He calls the environment a “bear trap” He says investors in this space should watch for two things 1) home buyers having access to easy funds and 2) a wide belief that real estate is going to appreciate. Until sentiment changes, says Eric, the housing market won’t go higher.

Tim Strazzini adds that he’s not hot or cold on housing, but he sees better valuation in materials companies such as Eagle Materials (EXP), and Owens-Illinois (OI).

Questions? Comments? fastmoney@cnbc.com

Trader disclosure:
On APR 17, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Strazzini Owns (CAH), (EWG), (IBM), (WMT), (YHOO) (USG); Bolling Owns (NMX), Gold, Silver, Corn, Bolling Is Short Soybeans