It's been an unprecedented run for the housing sector.

My overall assessment of the housing sector is that we probably fundamentally topped out in the third quarter of 2005 in terms of home sales and housing production.

The housing sector has likely passed its peak . . . and the boom is winding down to an expansion.

The drop in pending home sales is an affirmation that we are experiencing a modest slowing in the housing sector.

The housing sector has likely passed its peak. The boom is winding down. I expect continued softening in housing if rates remain at these levels or go higher.

I basically have a wait-and-see attitude with some healthy suspicion about this report. Either there is something that all of those other reports are not telling us, or this will get revised.