[Eagles Talon IV]

If interest rates start a downward trend in the 1st quarter of next year as I believe they might, you will see a resurgence in the RE markets. The selling price of a property is not as important to a home buyer as is the monthly payment. The lower the mortgage rates go the more money can be borrowed for the same payment.

A report just today showed a surge in mortgage applications last week because interest rates have already pulled back over half a point.

[ex-Texan]

On the other hand, this opinion published by the University of California at Berkeley suggests . . . the dreaded r - r - rrrrr r - r - rrrrr word.

http://www.berkeley.edu/news/media/releases/2006/08/07_delong.shtml