Some economists are saying that it's time for the Federal Reserve to raise interest rates.

Ken Rosen, chair of the University of California Fisher Center for Real Estate, says the financial crisis is over and short-term rates today should be 2 to 3 percent. By keeping rates so low, We are encouraging asset bubbles in the stock market, bond markets, and global real estate, Rosen says.

Demand for housing will increase as employers hire more workers, Rosen adds.

Rosen predicts construction of new homes will remain well below the historical norm of 1.1 million homes a year for at least two or three years and foreclosures will set records in 2010. The shadow inventory is real, he says.