When inflation is contained, mortgage rates decline, and home sales are stimulated. In fact, existing home sales hit a record high in April, defying expectations of a modest slowing trend, according to the National Association of Realtors.

David Lereah, the NAR's chief economist, said sales had been expected to hold at high levels. "A new record is a bit unexpected, but so is the performance of mortgage interest rates which have been lower than forecast," he said. "When we look at recent job gains, we see all the positive factors coming together to coincide with a powerful demographic demand for housing."

Jody Lane, president of Realty Times, says "New home sales are up, existing home sales are up and prices are holding firm. This should dispel any rumors about a so-called housing bubble."

He says, "Informing consumers through Realtors is exactly what our Market Condition Reports are designed to do. We have seen a huge increase in the number of people viewing this information. Realty Times is the leading publication dedicated to helping consumers in their pursuit of home ownership, because we are Realtor-friendly and wholeheartedly believe that it should be Realtors, the local market experts, who deliver market information to consumers."