“I think the issues that are affecting KB are definitely company-specific,” he said. “I think Lennar’s results today attest to a nascent recovery in the housing market.”
Wetenhall added that he did not think a possible rise in mortgage rates would derail the housing recovery.
“There’s an incredibly high level of affordability in the housing market so we don’t see the higher rates as an impediment to a recovery in the housing market at this juncture,” he said.
He listed several other stocks that could benefit from a housing market improvement.
“There a number of different ways to express the more constructive way on the housing market,” he said. “Armstrong’s one way to play it. You could also play that through Owens Corning or even USG .”
Additional News: Home Remodeling on a Roll
Additional Views: Lowe's vs Home Depot
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