A decline in mortgage rates sparked an uptick in both home purchases and refinancing activities, but Josh Steiner is quick to point out a meaningful housing market recovery is still a long way off.

“One thing to bear in mind is that the refinancing index is down about 95% off its 2020 levels,” Hedgeye’s Financials analyst explains in this clip from The Call @ Hedgeye. “So, you know, it sets a pretty easy comparison framework.”

Steiner’s long recommendation since August includes mid-cap title insurers like First American (FAF) and Fidelity National (FNF). 

“In the past four-plus months or so, FNF is up about 20%, and FAF is up about 5%,” he adds. “I still think these are compelling ideas over the intermediate to longer term, as the market continues to renormalize.” 

For more of Steiner’s in-depth analysis on the new and existing home landscapes, subscribe to Macro Pro. Email support@hedgeye.com for subscription upgrade options. 

Steiner: How to Play the Current U.S. Housing Market Setup - Call Banner