Has Housing hit a wall?

[David Krulac]

http://moneymorning.com/2016/04/08/housing-could-be-headed-for-the-rocks-but-homebuilders-are-already-there/

[Russell Brazil]

"But the tiny, 25-basis point increase in the federal funds rate was enough to slow January existing home sales by 0.4%. Then in February, existing home sales ominously fell 7.1%."

Post hoc ergo procter hoc.

Not only did the author draw the wrong conclusion here, but what actually occured in the market place was the opposite of what he suggests.  Mortgage interest rates have actually dropped since the fed funds rate was raised.

"Still, prices keep increasing."

Of course prices keep rising.  Interest rates actually dropped, combined with the spring season, which is for many markets in the country when prices leap the most, combined with a very tight inventory problem in many markets.