(Read more: Map: Tracking the US real estate recovery)

“We can thank investors for that limited inventory, of course, as many entry-level buyers are now going to have no choice but to rent,” said Peter Boockvar of The Lindsey Group.

Even as investors move out, cash is still king in this market. Thirty-one percent of sales were all-cash. That share is usually below 10 percent. June’s home sales were largely unaffected by the recent rise in mortgage rates, as contracts for those sales were signed in April and May.

The Realtors’ group expects higher rates to slow sales in the coming months, and if investors, who drove the market for so long, continue to exit, those sales could be even slower.

(Read more: Go green? Get a bigger mortgage)

—By CNBC’s Diana Olick. Follow her on Twitter @Diana_Olick.

Questions? Comments? facebook.com/DianaOlickCNBC

Article source: http://www.cnbc.com/id/100903814

“This implies a continuation of double-digit price increases from a year earlier, with a strong push from pent-up demand.”

(Read More: Rising Mortgage Rates Cause ‘Rush to ARMs’)

The average rate on the 30-year fixed conforming mortgage is up about 100 basis points from the beginning of May to around 4.5 percent. The rate spiked the most in the past week, before these May contracts were signed.

Article source: http://www.cnbc.com/id/100847085