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

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.

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

Home sales are coming down from the mountain peak, but they will level out at a high plateau -- a plateau that is higher than previous peaks in the housing cycle. This transition to a more normal and balanced market is a good thing.

The Boomers are in their peak earning years, buying second homes and retiring to Florida. We're seeing a lot of development and a lot of building but demand is greater than supply.

Many of our hot housing markets are transitioning from a sellers' market to a buyers' market.