If you fancy a 20 percent return on your investment over the next 12 months, it could be worth looking at the US housing market, according to Saxo Bank’s Head of Equity Strategy, Peter Garnry.

He says the current slowdown in that sector - caused by higher mortgage rates - is only temporary and that as a result, he and the rest of the Saxo Strategy team are bullish on US home builders. 

Peter adds that US lenders, such as Wells Fargo and JP Morgan, are making it easier for consumers to borrow and this move is sending the share price of US home builders higher. Until now, he explains the credit conditions in the US have been tight. Peter adds that house prices are still growing, albeit at a slower rate, "so there’s a lot of room for upside".