Mortgage rates hit record low

Existing home sales also decreased in May, 2.2 percent, compared with April to a 5.66 million annual pace, according to a June 22 report from the National Association of Realtors. 

Lawrence Yun, NAR's chief economist, said he expects one more month of elevated home sales behind low mortgage rates and stabilizing home prices.

"We are witnessing the ongoing effects of the home buyer tax credit, which we’ll also see in June real estate closings," he said in a release.

"However, approximately 180,000 homebuyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales."

Congress is looking to extend the closing date from June 30 to Sept. 30 for those who qualified for the tax credit.