If you think the real estate industry is finally on the mend, you better check the data one more time. Now that interest rates are on the rise, home prices will have to drop once again. But prepare your portfolio and you will have nothing to worry about.

Investors better get used to a new theme on Wall Street. As the economy emerges from its defensive shell and money begins to flow to the areas of least resistance, reading and hearing the term “divergence” will be a common occurrence.

Anybody that has ever sat through a basic economics course knows money always heads to the areas that offer the most beneficial risk/reward structure. If two potential investments have the same risk, the choice with the highest return possibility will always be the winner.

The real estate industry is obviously not immune to the phenomenon.

As mortgage rates continue to climb – they’re up almost