The recent spike in Treasury yields has sent home builder stocks tumbling as investors worry about what higher mortgage rates may mean for the housing recovery.
Higher rates may not kill the recovery, analysts say, though smart stock-picking will become more vital in the second half.
"If you think about what goes behind affordability, which is what we're all focused on now, it's mortgage rates, it's income, and it's house prices," Megan McGrath of MKM Partners told CNBC last week. "House prices are going up, mortgage rates are going up, so we need incomes to start going up, and that's what we'll be keeping an eye on over the next couple months."