"I do think it is worth investing in right now," Harvest Volatility Advisors managing director Dennis Davitt said. "I look at the PE for a stock like [KB Home (KBH) - Get Report], which is around 13, which is still below a lot of what we see in the S&P 500 and are lower volatility stocks."
Davitt is also bullish on the SPDR S&P Homebuilders ETF (XHB) as it gives investors "great exposure" to the homebuilder's space.
"The reason I like that is because, with everything that is going on in the marketplace right now, I don't think the rise in mortgage rates is going to outweigh the rise in confidence," Davitt noted.
Moreover, the XHB is an attractive play for investors because of its encompassing assets, like land. "All of the investors we talked to are predominantly looking at real assets these days," Davitt said.