New home sales took a dive in January; Goldman Sachs predicts budget cuts would slow U.S. growth; and oil markets nervously await the outcome of the upheaval in Libya.

Existing home sales rose unexpectedly during January, according to the National Association of Realtors (NAR), up 2.7 percent from the previous month. The annualized sales rate was 5.36 million units, which compares to roughly 4.9 million sold in all of 2010 (using NAR figures).

The latest S&P/Case-Shiller indexes on U.S. housing prices confirm that home valuations are still on the slide. In fact, almost all of the small pricing uptick experienced in 2009, which probably was a result of the long-gone federal homebuyer tax credit, has been erased. A continuing influx of distressed properties put further pressure on prices.

Is the federal government going to shut down because of the fracas between zealous House members (including freshman who weren’t around for the ’95 shutdown), somewhat less zealous members of Congress and the administration? On Saturday, the House passed by 235-189 a bill that cut more than $61 billion from fiscal 2011–the year underway–as part of a temporary funding measure.

An increase in multifamily starts offset a drop in single-family housing starts in January; and analysts are worried about inflation, although the Fed isn’t.

Retail didn’t see quite the jump in January for which many were hoping; Borders finally files for bankruptcy; and Family Dollar may go private.

Though lacking in details, the Obama administration has released a plan that calls for the gradual dissolution of Fannie and Freddie. And one consumer index for January turns out optimism about the job market.