New and existing home sales jumped to a 6.2 million-unit annualized rate in May, the strongest pace since January when unusually warm winter weather buoyed activity. We have to go back to March of 2007 to see such a strong pace in home sales. Even though new homes account for a much smaller portion of the housing market, the rise is encouraging because new home sales are booked the moment a buyer makes an offer; existing home sales are not counted until after a buyer closes on a property. The new home sales data portends even greater strength in the existing market in the months to come. Coupled with the recent drop in mortgage rates, it looks like it will be a very hot summer for the housing market.