New home sales across the country rose last month in a monthly comparison according to the Commerce Department.  The housing market was active during the beginning of this year due to the Homebuyer Tax Credit and the low interest rates.

Both the Homebuyer Tax Credit and the FED program that pumped $1.25 billion into mortgage backed securities in an effort to keep mortgage rates at or around 5% expired during the spring, causing a lag in the real estate market.

The high unemployment rate as well as the troubled economy is continuing to add to the lack of potential homebuyers.  However, with the European Debt crisis, many investors shifted their funds into safer US treasury bonds and as mortgage rates are closely tied into long-term bonds, the rates have dropped to the lowest percentage in 50 years.