First, the good news: the latest pending home sales figures for were much, much higher than anyone expected, up a practically healthy looking 3.2% from last year.
Now the bad news: pending home sales are not done deals. The buyers often still have to secure a mortgage. And the mortgage market kind of blew up last week.
Even if the current sales go through, a 500 basis point increase in the interest rate is going to put a meaningful crimp in buyer demand. But it's probable that not all of the sales will go through: some buyers won't have locked in a rate, and if the Field Check Blog is correct, others may not be able to get their loan processed in time to close. Joe Weisenthal has more.