Bloomberg's Luke Kawa takes a look at the ongoing debate as to whether or not the Fed should increase interest rates. While the conventional wisdom says that a rate hike would hurt consumer spending, some economists believe increasing the rate at this point could act as a stimulus. 

Increased interest rates, they contend, could fuel the housing market by increasing the profitability of banks.

In fact, higher interest rates might actually add fuel to, rather than cool, the housing market.

Joe LaVorgna, chief U.S. economist at Deutsche Bank, observes that higher interest rates would be positive for banks' net interest margins, thereby inducing them to loosen the lending spigots.

"Debt service is not the problem for people who want to take out a mortgage," he said. "Lower rates and a flatter curve aren't going to help the housing market too much if you can't get a mortgage because standards are still too tight."
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