(NBCNC) - Home sales are up but wall street had another rough day after statements yesterday from the Federal Reserve Chairman.
For the first time since November 2009, sales of previously occupied homes went over the 5-million mark in May.
The gain shows the home re-sale market continues to strengthen.
"The jump in home sales was higher in may than we expected especially given the very low supply of homes out there for sale. It does say that demand is coming back to the market .the question is can this demand continue when home prices are rising so fast," said CNBC Real Estate Correspondent Diana Olick.
U.S. mortgage rates remain about 4-percent, but could shoot up after chairman Ben Bernanke said the Federal Reserve may reduce its bond purchases, which have fueled the economy, later this year.
Still experts don't think that will greatly affect home sales.
"So while higher mortgage rates take away some of that buying power it doesn't offset what's critically needed to get people to buy homes and that's confidence that the economy is moving in the right direction," said Greg McBride, Senior Financial Analyst at bankrate.com
The fed has been buying billions of treasury and mortgage bonds since late last year.
That's pushing down long-term interest rate prompting consumers to borrow and spend.
But Bernanke says the fed may slow down or end the program if the economy continues to grow.
"Our policies are economic dependent and, in particular, if financial conditions move in a way that make this economic scenario unlikely, for example, then that would be a area for us to adjust our policy, " the Federal Reserve Chairman said.
Bernanke's mixed message has rattled wall street as investors dumped stocks and bonds for two days in a row in anticipation of rising interest rates.
But the fed remains optimistic about the growing economy.
It predicts the unemployment rate could fall to 6.5 percent by the end of 2014.