Dive summary:

• Rising interest rates probably are not going to stop the recovery of the housing market, many economists say, but it would be better for everyone if the economy overall recovers as they rise.
• Regardless of the big picture, however, even rates that are up more than a percentage point since May are still affordable by historical standards, which economists say begins to end around 6%—though people buying, or trying to buy, today may not be taking a historical view if wages and the number of jobs available do not rise, too.
• The climb from  3.59% at the start of may to 4.68% in the first two weeks of July for a 30-year, fixed-rate mortgage means a $200,000 home with 10% down costs $100 more per month just for principal and interest.

From the article:

Last week, Fed Chairman Ben Bernanke told Congress that if mortgage-rate increases threatened recent gains in the housing market, the Fed would have to take "additional action." ...