The Case Shiller 20-City Index rose 5.7% over the last 12 months, which is up from the 5.5% year-over-year gains posted the previous month.  In my little experience, I am seeing that rising home prices and rising interest rates are making it increasingly difficult for low income families to purchase a house.  Though the value of goods in most sectors is increasing, there is a buyer for just about everything out there for sale.  Consequently, Consumer Confidence swelled well past the 113.3 expected index reading to an astonishingly high 125.6.  Consumer spending accounts for 2/3 of the economy, so a positive outlook is a big deal , because it typically leads to big spending later on.  The danger to the mortgage market is that with increased spending and higher prices comes inflation, which always pushes interest rates upward.