The Associated press reported today that the housing market is showing signs of recovery.

According to the Associate Press, the NAR said Wednesday that its seasonally adjusted index of pending sales increased by 0.1 percent in May to 90.7.

However, they say, that there is 1 to 2 months of lag time from the time the contract is written up to the actual close of escrow.  Indicating that the rise in home sales could have been in effect well before May.

Since the rise in May, the Mortgage Bankers Association said that "the volume of mortgage applications to purchase a home is effectively flat over the past four weeks."

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