[hunter112]

Good point, but I think we will see 30 year fixed rates at 8, maybe 9 percent when all is said and done. If you look at rates over the last three decades, that's below the average, but way above what fueled the boom of the last few years.

I see houses of cards ready to collapse. It will affect everyone, in some way or another.

[RegulatorCountry]

"I see houses of cards ready to collapse."

There are vast swathes of the country that haven't seen anything near 10% appreciation. Most of these areas have fairly decent economic conditions, too, such as where I am, Greensboro, NC. We've been muddling along with 3% or so a year since the late 90s, with only a slight jump to a projected 7% for the year for 2005. There's no bubble to burst here, because appreciation has been below average for the duration of all this cheap money. We were doing fairly well during the mid-late 90s with rates around 8%, so I just don't see the end of the real estate world due to that. This is true for just about all of so-called "Red State" America, other than Florida, and some coastal areas fueled by cash out refi money flowing into beachfront vacation homes.