We started buying Home Depot shares last week as a play on housing and interest rates.
Our Home Depot investment thesis is all about a pickup in housing turnover, the main driver of the home improvement retailer's sales.
When rates went below 6.5% toward the end of last year, he explained, there was an immediate increase in housing activity, mortgage applications, and mortgage refinance applications.
Mortgage rates with a 5% handle could be on the horizon, at least that's what Toll Brothers CEO Doug Yearley thinks.
With these numbers, it's easy to see why Decker is optimistic that activity will normalize, and housing turnover and remodel activity will pick-up again.
Persons:
Ted Decker, Doug Yearley, Yearley, Decker, Lowe's, Jim Cramer's, Jim Cramer, Jim
Organizations:
Home Depot, Dow, Depot, Toll, Home, Management, CNBC