According the article (New home sales in surprise rebound) I found on CNNMoney.com a 4.7% increase is generally a good sign but it’s definitely not enough to say the economy is recovering. The U.S. Census Bureau reported that the median sales were $200,900, down 18% from a year ago. The economist at Moody’s Economy.com also stated that this information is only a months worth of information and that there needs to be at least three months of information to tell if the economy is recovering. It also explained that the Mortgage Bankers Association showed a 30% increase in loan applications last week. The main cause was due to Americans refinancing existing loans. I believe this is a good sign, but my gut feeling tells me that the worst has yet to come. I know this article says there is an increase in sales, but I have yet to hear good news of much of an increase in new home sales around my home town.