Correlation?

The number of Existing Home Sales rose 3.3% last month, and are up 3.8% from last year at this time.  The median home price however, rose 7.1% to $228,900.  Nationwide, there is only a 3.6 month supply of homes on the market.  Mortgage applications for home purchases are down 2.0% from last month, but up 9.5% from last year.  Over the last two years, mortgage rates have come down and the number of sales have come up.  It will be interesting to see what happens to home sales now that rates are heading north again.