During May, the sum of new and existing single-family home sales rose to 5.1 million units on a seasonally adjusted annual rate. That is the best pace since November 2009, when tax incentives boosted sales. The four-week average of mortgage applications to purchase a house remains on an uptrend through the week of June 21, despite the rise in mortgage rates.
The index of pending existing home sales soared in May to a new cyclical high. This suggests that the initial reaction to rising mortgage rates is to prompt would-be homebuyers to close their deals pronto.
Source: Ed Yardeni — Ed Yardeni is the president and chief investment strategist of Yardeni Research Inc., a provider of independent investment strategy and economics research for institutional investors.