This will have an undeniable effect on demand for housing, as home buyers will have to spend more of their incomes to buy a home.

FORBES: High Home Price-to-Income Ratios Hiding Behind Low Mortgage Rates

So a decline of 2.2% in closings in May indicates demand for homes fell in April even while the home-buyer stimulus rebates were still in effect.

FORBES: Reality Is A Bear For Real Estate

When the MID raises the demand for homes and the supply is hard to expand, then the effect is to increase home prices and decrease home ownership.

FORBES: Heretic Reality: Mortgage Interest Deduction Needs To Be Slashed