Housing Market Can Finally Handle Interest Rate Hike, Cramer Says
NEW YORK ( Real Money) -- After Greece gets resolved, we will be ready for a rate hike. There will be dislocations, as there will be hedge fund managers who didn't expect it to occur and there will be emerging countries that will have hot money sucked out of them. We will hear about how the stronger dollar will lay to waste export sales, but if Greece is resolved it is hard to imagine the euro going much lower, and we know the yen seems to have run its downward course.

But what's most encouraged is a return to normalcy in this country. Increasingly, you are hearing that the country's starting to get back to 2007 data, particularly with retail, but more importantly, housing. A lot of that is because employment growth has been so strong.

And a lot of it is because of something that was stressed over and over again on perhaps the most important conference call I heard in the last few weeks, the conference call from KB Home (KBH), the national builder that constructs everything from inexpensive starter homes to incredibly luxurious condos. The $200,000 to $3 million gamut, and the dramatic regional stretching of the KB Home footprint, makes it an ideal barometer for what's happening in the 10% of the U.S. economy that punches well above its weight when it comes to gross domestic product.

To put it simply: business is gangbusters. Not only that, it is sustainably gangbusters because of one aspect that is not going to take us below the 2007 consumer confidence figure that KB Home says it feels we've gotten to: namely, household formation.

If you liked this article you might like

Markets Recede From All Time Highs on Tech Selloff

KB Home Cuts CEO Bonus After Kathy Griffin Rant

Housing Stocks Fall as Fed Leaves Rates Unchanged

These Stocks Are Ready to Reverse Course