The housing industry will grow 10 percent over the next two to three years despite the anticipated rise in mortgage rates, Pimco's Mark Kiesel predicted Monday.
That increase will come, in part, from pent-up demand from millennials, he told CNBC's "Power Lunch." Kiesel pointed out that 700,000 jobs were added in the 25- to 34-year-old range and that 30 percent of 18- to 24-year-olds are currently living with their parents.
Plus, inventories are at 15-year lows and household formations are picking up, he noted.
"You've added 1.5 million in household formations over the last year. That's now starting to see a significant recovery," said Kiesel, Pimco's chief investment officer of global credit.