NEW YORK (TheStreet) -- Toll Brothers (TOL)TOL reports earnings next week and Jim Cramer discussed his expectations with TheStreet's Brittany Umar. 

In November, TOL outpaced its peers, posting a 6% rise in orders when it reported preliminary results, whereas PulteGroup (PHM)PHM and D.R. Horton (DHI)DHI each posted drops in orders. 

Cramer questioned what would happen to TOL if rates increased, such as 10-year Treasury yields reaching 3.5% and 30-year mortgage rates hitting 5.5%. He added that rising rates is both good and bad. On one hand, it's a signal that the economy is recovering; at the same time, it is hindering growth potential. 

Specifically, he said TOL is "thoughtful" about where mortgage rates are likely headed, and should be able to distinguish whether  investors need to worry about it. 

Cramer complimented the work by TOL's economists and suggested they will provide investors with more insight than just the outlook of their company, such as on the overall economy or industry. 

Despite how higher rates may affect the housing market, Cramer is still optimistic on the overall trend. However, he concluded that when rates stop going higher, he prefers to be in names such as Home Depot (HD)HD and Whirlpool (WHR)WHR. 

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.