Sales bottomed out at an annual rate of 3.5 million houses in July 2010 and then climbed steadily for three years to 5.4 million in July 2013. That was about the same annual rate that we averaged in the years preceding the boom. Sales have fallen somewhat since mid-2013, due in part to rising mortgage rates, but those rates remain low by historical standards.
The fundamentals of the housing market remain sound, including stronger household formation, solid job growth, and consumers with stronger balance sheets. Home prices are well below their peaks, but they continue to improve as the market recovers.