Then, CEOs from several regional banks around the country told CNBC they are seeing some signs of “green shoots” in the housing market.
“The mortgage business is booming—70 percent in refinancing and 30 percent in new home purchases,” Kelly King, CEO of BB&T said.
“We’re seeing large correspondent warehouse providers coming back into the market making money available to larger mortgage regional bankers. It’s a clear sign that people are looking back at supporting the mortgage market,” adds Steve Calk, CEO of Chicago Bank.
On top of that the National Association of Home Builders said its housing market index rose for the second month in a row in May, reflecting growing optimism among builders.
"I'm mildly bullish," reveals Jared Levy of Peak6 Investments on Fast Money. With the sharp declines in real estate, home prices are currently at 2003 levels. Moving forward I think we start to see some slight rise in housing vales.
What’s the play?
I’d look at calls in Phlx Hsg Sector Index or the SPDR S&P Homebuilders ETF counsels Levy.
Got something to to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to firstname.lastname@example.org.
Trader disclosure: On May 18th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (BX), (EEM), (FCX), (INFY), (PBR), (TTM); Macke Owns (AAPL), (WFC), (AGU), (GE), (SKF), (SDS); Finerman's Firm Owns (PBR), (RIG); Finerman's Firm Owns (BAC) Preferred; (WFC) Preferred; Finerman's Firm Is Short (BAC), (WFC); Najarian Owns (AMD) Calls; Najarian Owns (APC) CAll Spread; Najarian Owns (BBY) Put Spread; Najarian Owns (BP) Call Spread; Najarian Owns (BX) Calls; Najarian Owns (FAS) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (HPQ) Put Spread; Najarian Owns (MOS) Call Spread; Najarian OWns (XHB) Call Spread; Najarian Owns (XLB) Call Spread; Najarian Owns (XLU) Calls