Decoding the Data from Katrina's effects.

Starting two weeks ago, the federal goverment and trade groups released seemingly contradictory data on the state of the housing market. Hurricane Katrina created more confusion about whether this is a good time to buy or sell. There's no simple answer, but here's how economists we contacted decoded some of the signs:

FACT: 30-year fixed-rate mortgages have dropped to 5.64 percent, the lowest level since mid-July.
BUY: Y
SELL: N
REASON: The Federal Reserve may hold off trying to raise interest rates, at least temporarily, if Katrina's economic impact curbs inflation fears.

FACT: Gasoline prices have risen to $3.03 a gallon, from $2.34 a month ago; prices will probably remain high in the near future.
BUY: N
SELL: Y
REASON: Rising prices reduce buyers' purchasing power, and eventually may lead to layoffs that shrink the buyer pool.

FACT: New-home prices fell to $219,500 in June from a record $237,300 in February 2005.
BUY: Y
SELL: N
REASON: New home prices may rise again if Katrina rebuilding efforts siphon off materials and manpower, constricting supply.

FACT: Existing-home prices reached a record $218,000 in July.
BUY: Y
SELL: N
REASON: Prices rose at their fastest pace in 25 years earlier this year, and could go higher.

FACT: Existing-home sales dropped 2.6 percent in July from the month before.
BUY: N
SELL: Y
REASON: It's a sign that the ferocious sales pace of the past year has started to cool.

FACT: The Pending Sales Index, the National Association of Realtors' measure of homes that are under contract, dropped 1 percent, to 125.1, in July.
BUY: N
SELL: Y
REASON: Although the index level is still high, the drop is a sign that cooling could continue.