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Pending Home Sales Data Signal a Bottom

By Jim Cramer

 About this article:
 Oh my, right in the same breath about the pending home sales data that has bottom written all over it, the pundits come right back and say, "Won't these higher rates derail things?" OK, let's go over it. You have two components: affordability and rates. Affordability is off the charts. Rates? They were ridiculously low, now they are just historically low. How can the pundits keep pushing on this string of mortgage trouble? It is driving me crazy. Especially because the $8,000 for first-time homebuyers is larger than any quarter-point rate boost for the buyers. Do the math. A 4.75% mortgage vs. 5% on $ 275,000 (average house), of which you put down 30% -- the mortgage payments are vastly exceeded by the credit for some time, certainly the time you need to settle in. You can do the math to 6%, and it still works. Darn it,...

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