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What: Shares of homebuilder Hovnanian Enterprises
So what: The Mortgage Bankers Association reported that mortgage applications jumped a seasonally adjusted 16.6% last week compared with the previous week. The index of purchase prices also rose 4% from the week before and 11% from a year ago.
Now what: This is a continuation of positive housing data that started after the Federal Reserve announced QE3. All signs are pointing to continuing strength in housing, and that should bode well for Hovnanian in the future. I'm still a little concerned that analysts aren't expecting a profit from the company in 2013, but with earnings beating expectations in the past three quarters by a wide margin, they may just be behind the 8-ball. I'm still not a buyer until I see strong profitability, but there is a huge upside if this data means that 2013 will be much better than expected.
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Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.
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