MARKET COMMENTARY on Wednesday: 05/07/08 10:30 AM EDT : The second major release of the day was more bearish than anticipated. The National Association of Realtors reported that its index of pending home sales fell in March by 1.0%. The decline was deeper than the 0.6% that had been forecast. Moreover, February's originally reported decline of 1.9% was revised to a drop of 2.8%. On a year-over-year basis, March's index was 21.7% lower than in March of last year. The pending sales data was first published in 2005 with data going back to 2001. The index is a measure of contract activity and the NAR asserts that 80% of contracts become sales within two months and a large portion of the rest become sales two months thereafter. But the release data is somewhat dated and its significance is second-tier in that it provides a clue to upcoming actual sales. Moreover, the current state of the housing market is well known. A more bullish housing report also came out this morning. The Mortgage Bankers Association of America said that its application index rose last week by 15.6% following two weeks of declines totaling 23.7%. The purchase index rose by 12.1% and the refinance index by 19.3%. Refinances accounted for 47.1% of application activity, up from 45.7% the week before. Applications for adjustable rate mortgages accounted for 6.8% of activity, up from 5.9%. The index for conventional mortgages rose by 11.7% but is still below last year's average while the index for government backed loans rose by 13.2% and is sharply elevated on an historical basis. -- Our Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter. This month's issue includes topics such as: "First Time Buyers' Dos And Don'ts"; "Taking The Real Estate Investment Plunge"; "Tax Rebate Uses For Buyers"; "Review The Landscape Before You Buy Or Sell"; "Housing Bills Will Help Homeowners And Economy".