I think there is a lag in new home sales and the closings in October really were under contract in Aug and September, thus November numbers should be down dramatically even after seasonal adjustment. Rates will undoubtedly go up again at the next meeting, but with the advent of so many new mortgage products (interest only, reverse mortgage, etc.) money is still relatively easy but definitly more risky. I expect volume levels to slow, prices to flatten across most of the US but do not see a big drop in prices unless rates get above 8%.
Is this the end of the housing boom? For October, existing home sales was down while new home sales surged.?