This Weeks Housing Report

Finally, some good news! Us home sales actually showed some unexpected strength last week. April pending home sales rose 6.3%, instead of the expected 1.0% drop. Signed contracts were reported at a level of 88.2, the highest level in 6 months. A reading of 100 equals the average sales activity we experienced in 2001. Experts are saying that the April figures could suggest that home sales have stopped the "free fall" and the market could be poised for a rebound soon.

During Fed Chairman, Ben Bernanke's, speech on Monday, he said that he belives that the economy is out of danger and the Fed would now pay "close attention" to inflation. Experts in the financial sector immediately interpreted this to mean that rate cuts are officially over. With some even thinking a rate hike may come as soon as August and many others consider a 0.25% increase for October will be likely.

If you have been sitting on the sidelines, waiting for rates to fall further, now might be the time to get in the market and make sure you don't get caught as rates climb back up, and the market begins its recovery.