Pending home sales slid 4.1% in February, according to the monthly index released by the National Association of Realtors. The index reflects transactions where the contract has been signed for an existing-home sale, but the sale has not yet closed. Economists view it as an indicator for the direction of existing-home sales in subsequent months.  With February’s decline, the index has fallen to the lowest level in nearly two years.  Compared to a year ago, pending home sales were down 5.4%. February was the fourth consecutive month in which pending sales declined on a monthly basis and the ninth consecutive month in which contract signings were down year-over-year. Lawrence Yun, chief economist for the National Association of Realtors, attributed the index’s decrease in February to the low supply of homes listed for sale.

Another headwind for the housing market is the average rate on the 30-year fixed mortgage shot significantly higher Friday, rising 24 basis points to 4.95%, according to Mortgage News Daily.  The rate surged as the yield on the 10 Year Treasury Bond also took off. Mortgage rates follow that yield loosely, but not entirely. Mortgage rates are also influenced by demand for mortgage-backed bonds. The Federal Reserve is scaling back their holdings of these assets. With both rates and prices considerably higher, the median mortgage payment is now more than 20% higher than it was a year ago.

25 Oscar nominees received a gift bag last night containing gifts worth $137,000.  But don’t feel too jealous as the recipients will have to pay taxes up to 50% on that gift.