Signs of recovery in the housing market and the national economy keep popping up – and are even beginning to surprise veteran analysts on Wall Street and elsewhere. Though economists had expected the latest pending home sales index to be down – after all, February saw the worst weather in decades in large parts of the U.S. – the numbers actually took a big bounce. The National Association of Realtors reported that pending sales jumped 8.2 percent for the month and were 17 percent higher than they were at the same time last year. With the April 30 deadline for sales contracts to qualify for the two housing tax credits just weeks away, analysts expect home sales activity to remain high.  Keep in mind there’s a challenge taking shape on the horizon: Rising mortgage rates that are inevitable in an economy rebounding out of recession. 

Mark Zandi, chief economist for Moody’s Economy.com, told the New York Times that “consumers are (getting) almost giddy” in their zeal to resume spending, and they are cutting their savings to fund their new purchases.

All of this, of course, is great news for housing, which is hardwired to employment growth and consumer confidence

But don’t assume we’re out of the woods quite yet — not with the national unemployment rate stuck at 9.7 percent. And there’s another challenge taking shape on the horizon: Rising mortgage rates that are inevitable in an economy rebounding out of recession.