NEW YORK ( TheStreet) -- Although housing has been strong in 2013, the homebuilders have been punished this summer. Brian Peery, portfolio manager for the Hennessy Cornerstone Mid Cap 30 Fund, tells TheStreet's Gregg Greenberg about the stocks he prefers.
He added that the company has been seeing pent-up demand from homeowners looking to upgrade their homes, something they were not willing to do several years ago when home prices were in decline.
It's also why he continues to like Pier 1 Imports (PIR - Get Report). In general, consumers do not remodel their entire home all in one trip, creating a form of recurring sales for the company, he said.Although a spike in interest rates would push mortgage rates higher, Peery said that could actually increase demand for housing, rather than decrease it, because potential buyers will be looking to lock-in rates before the hike. A beneficiary of this would be Standard Pacific Corp. (SPF - Get Report), a homebuilder and mortgage lender in the Southwest. Peery said that he remains optimistic on these retailers and homebuilders through the rest of 2013 and expects demand to remain strong.