Negative housing news took a toll on markets in New York on Monday. And shares of banks, brokers and mortgage lenders all fell on nagging credit worries and after Goldman Sachs slashed its earnings forecast on Lehman Brothers, Bear Stearns and Morgan Stanley.

Existing home sales fell slightly in July, while the inventory of single-family homes is at its highest supply level since October 1991. The National Association of Realtors said sales by homeowners slipped to an annual rate of 5.75 million last month, and the number of homes for sale jumped 5.1 per cent.

On Monday; the Dow Jones Industrials was down 57 to 13,322; the S&P500 lost 13 points ending at 1,467, and the Nasdaq was down 15 to finish at 2,561.