Despite a slow start in the first month of 2015, sales in the California housing market have continued rising on a year-over-year basis for the last four months. With pending sales jumping at a double-digit rate from a year ago, the California housing market should continue its momentum and have a solid home buying season through the rest of the summer. But with interest rates slowly rising and expected to climb further towards the end of the year, how should we expect the market to react? While we are seeing more homes being listed in recent months, the housing supply remains tight. Should we be concerned? How would low inventory levels affect housing affordability?