Low Rates aren't helping housing market - how would high rates?
Here in phx az a 95k home in 1997 went up to 260k in 2006, they are now 95k again. Wouldnt shock me if they go to 60k.
We have no idea whats going to happen. I look at it this way, bernahanky said housing is dead for at least 5 yrs, so thats at least 10, and anyone that could afford a home would have bought one by now. If you cant buy one at 4% interest you probably couldnt at 0%. Bad credit, no job, no deal. If they need to raise rates why not. people with cash and Srs citiz would love to get 5% and spend some "extra money"