While beach area vacation condos continue to sell like there's no tomorrow, not everyone is so quick to purchase that dream vacation condo they've been dreaming of, in spite of record-breaking condo sales. Why? It appears that some think rates may slide down again, but with new jobs appearing in vast numbers for the second month in a row, it's unlikely, especially if the trend continues.

Last week ended with higher rates. BankRate.com shows the 30-year fixed currently at 5.92 percent and mortgage columnist Holden Lewis has some commentary regarding where mortgage rates are going on the BankRate.com blog:

Let's take a look at recent history. On April 2 the Labor Department released the March employment report, which reflected unexpectedly strong growth. The yield on the 10-year Treasury rose 27 basis points that day, finishing at 4.15 percent. Monday rolled around and the 10-year yield went up another 9 basis points, to 4.24 percent. It went down a little bit that week, but the next Monday it closed at 4.25 percent.

My conclusion: I wouldn't be surprised to see rates rise some more on Monday.

I wouldn't be surprised to see rates rising, either. The T-bond is the best indicator when rates are this low and as long as it continues to rise, rates will likely continue to rise, as well.

Higher rates increase home purchase prices, condo purchase prices or any purchase that in most cases requires a mortgage. Cash buyers could benefit slightly by putting off a purchase, as prices will likely level off slightly as prices adjust to the new mortgage rates. Once rates reach seven or eight percent, renters will like stay put, rather than buying. Is there a solution for those who want to buy? Yes. Buy now.

Those who are buying and plan on borrowing to do so will not benefit from rate increases, even if prices level off, primarily because any leveling will be off-set by the increase in rates.

For more mortgage rate news and reports, visit BankRate.com.

Also, news this week in the real estate arena, condo sales continue to be hot. So hot that condos along with co-ops broke sales records during the first quarter, even though sales slipped slightly from the fourth quarter according to RisMedia.com. This should be no surprise as investors who once bought apartment complexes as rental investments, now buy them and turn their units into condos to sell to future owners. According to RisMedia.com: