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Power Play: Betting on a housing rebound

A new home for sale stands in the Andalucia neighborhood of The Dominion gated community in San Antonio, Texas.
Matthew Busch | Bloomberg | Getty Images
A new home for sale stands in the Andalucia neighborhood of The Dominion gated community in San Antonio, Texas.

The Fed is expected to raise interest rates this year, just when we are starting to see some traction in the housing market.

But Brad McMillan, chief investment officer at Commonwealth Financial Network, tells CNBC's "Power Lunch" on Thursday, he is not worried this will hurt the rebound and likes homebuilders right now. "Housing has been underappreciated. With mortgage lending loosening up, this area should improve," McMillan said.

Read MoreWeekly mortgage applications drop 4.6% on higher rates

He also doesn't believe the housing market has changed with the rise of the millennial generation.

"Millennials are going to have kids. They are going to want furniture that doesn't come from Ikea," McMillan said.

The homebuilding sector is up more than one percent during trading, but is down about one percent year-to-date.