The National Association of Realtors said today that sales of existing homes for the month of June increased by an annualized rate of 5.57 million properties, the fastest pace since February of 2007. Low rates probably contributed to this tally but at the same time fear of an increase in rates sometime perhaps over the next six months heading into 2017 also pushed a few home buyers off the fence.  Also today, Freddie Mac released its weekly national mortgage rate survey and the 30-year note bumped up by a scant three basis points to 3.45% while the 15-year fixed followed suit with a three bps rise to 2.78%. Sales for existing homes have risen for the past four months in a row while rates are still near historic lows. Historically, the “average” 30 year fixed rate was around 7.50%, this according to Freddie Mac which has kept a watch on rates since 1971.

 

Existing inventory for homes has dwindled and home builders have not yet decided to continue to build new homes. This should continue to push up the price of real estate and when combined with rising interest rates sometime early next year, a larger swath of potential first time homebuyers might very well be priced out of the market. This will also result in a continued push to lower vacancy rates in apartment buildings and keep rental rates on the move upward.

Next week we’ll get a reading on Durable Goods for June along with an advance look at GDP, two reports that could have some impact on Wall Street. Other than that, the next piece of data investors will be on the lookout for will be the Unemployment Report and job data. June’s somewhat surprising 287,000 new jobs could appear to be an anomaly should July’s job creation fall short.