Is this the end of the housing boom? For October, existing home sales was down while new home sales surged.?

I think there is a lag in new home sales and the closings in October really were under contract in Aug and September, thus November numbers should be down dramatically even after seasonal adjustment. Rates will undoubtedly go up again at the next meeting, but with the advent of so many new mortgage products (interest only, reverse mortgage, etc.) money is still relatively easy but definitly more risky. I expect volume levels to slow, prices to flatten across most of the US but do not see a big drop in prices unless rates get above 8%.

Existing homes in my area are sitting empty and they're still building. There are lots of cheap buys out there to use as rental properties. Can't touch them. The new homes are drawing their customers from the people that ordinarily don't qualify for mortgages and used to be renters. Builders are offering cheap loans and "one dollar down while we build your home and repair your credit." As can be expected the default rate around here is about 50 percent. Buyers are paying a premium for houses, but they don't pay very long. ;)