If you have been waiting for interest rates to reach their lowest, you may have already seen it. 

 Last week a leading gauge of US home sales showed unexpected strength. April Pending Homes Sales rose 6.3%, way over expectations of a 1.0% drop! This measure of signed sales contracts registered a level of 88.2; it’s highest in six months. A 100 reading equals the average sales activity in 2001. Experts are saying the April figure suggests the pace of home sales has clearly stopped its free fall and might soon rebound. The index measures existing home sales, currently about 85% of the market.

The other economic news that was positive for housing came from Fed Chairman Ben Bernanke. In a speech Monday, he said he believes the economy is out of danger and the Fed would now pay "close attention" to inflation. Experts immediately interpreted this to mean rate cuts are officially over. Some feel a hike may come as soon as August and many consider a 0.25% increase likely for October. This is good news because while the Fed was in rate trimming mode, many potential homebuyers stayed on the sidelines, waiting for rates to fall more. Now they need to get back in the game and make sure they don't wait and get caught with rates climbing back up!