U.S. existing home sales data for June shows that the housing industry continues to support economic growth in the United States reports BMO Nesbitt Burns.

“Everything’s clicking for the U.S. housing industry, which registered another solid month of sales well above the 5 million mark in June,” says BMO. “Home buying has been the beneficiary of low borrowing costs. Mortgage rates slipped under 7.1% in May, down from 8% a year earlier, and have fluctuated essentially sideways since then. At this level of mortgage rates, U.S. home affordability is nearly at an all-time high.”

BMO notes that while the stock markets have slumped, real estate has been a strong source of value for homeowners. “Although employment growth has subsided, income gains have been relatively solid and unemployment remains low. Wealth levels have increased substantially over the last five years and some households are diversifying from the equity market into real estate. Home prices have been moving upward, generating capital gains which consumers have unlocked via a wave of refinancing activity.”

It suggests that housing has been providing the support to keep the U.S. from slipping into recession. “Home sales trigger a wide array of activities ranging from the hiring of mortgage processors all the way through the gamut of household retail items to lumber-mill workers. The economy needs some serious support while the factory sector adjusts. Housing, so far, is providing that support, performing well beyond anyone’s forecast for this year.”