Fast Money Traders Debate On Homebuilding Sector

Pete Najarian and Stephen Weiss spoke on

about pros and cons of trading the homebuilding sector. Najarian is bullish on the space because of excellent earnings results by

and

.

reported on Wednesday and the whole space pulled back. Najarian sees an opportunity to buy the stocks in the space, not as an investment, but as a trade. He is expecting a pick up in demand and he is not worried by the possible increase of interest rates. He thinks that higher rates could motivate people to make a purchase because they are going to realize that low interest rates are not going to last forever. Weiss believes that high interest rates could hurt the homebuilding stocks. He explained that in the last 20 years the affordability declined with an increase in interest rates. This inverse correlation will cause the decline in the space and he would use the opportunity to sell and use his money to buy other stocks.