NEW YORK (TheStreet) --Housing's been hot lately, with ultra-low supply sending prices higher and fueling a wave of construction starts -- a small but noteworthy economic tailwind. Historically cheap mortgages have been a key driver, but now rates are ticking up. Over the past five weeks, weekly 30-year fixed rates have jumped nearly a 0.6 percentage point, leading some to wonder how higher borrowing costs will impact the housing markets.
In our view, higher mortgage rates could potentially help housing markets sustain their largely underappreciated run. And as investors notice and sentiment continues improving, stocks could get a nice boost, too.