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.

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