New home sales beat estimates

On the same day that two reports came out showing that mortgage rates have risen above 6.0, another report showing new home sales were up 9.4%, the highest gain since 2000, shocked the financial world. More important, analysts noted that sales to inventory numbers still indicate that demand is much stronger than supply.

Some analysts warn this might be a last gasp for those wanting to take advantage of low rates before they are gone. Still, the numbers are very surprising to most real estate market analysts. The idea that immigration and a demographic shift might keep the real estate market going a while longer is gaining ground.