The housing market appears to have recovered from the depth of its decline. Toll Brothers reported a whopping 46% jump in its latest earnings report and Home Depot's earnings soared 18%. Today the National Association of Realtors reported that April existing home sales surged to their highest level in more than three years.

There is some bad news mixed in with all of these housing numbers, April housing starts recently plummeted from a 48-month high and applications for home mortgages dropped for the second week in a row.

So, asks Yahoo! Finance, will the housing recovery continue and spread, or slow down?