Agreed - though refinancing in the long run is usually better. In my case, I spent a bit up front for a lower rate, but my break-even point is only 26 months (+/-) or so into the future. From that point on, its all positive. I beleive that despite many folks taking on bitter mortgages with a refinance (roll your credit debt into one low monthly payment!!!!), most of us just work it towards paying less overall interest to the bank during the course of ownership of the property.
One thing that the lower interest rate has inspired is the movement of housing as a whole. I don't know about the whole country, but they're building as fast as they can around here. Its strange. (Oddly, we have a very low unemployment rate locally, something around 4%). Anyway, once people settle into their respective abodes and are satisfied again, housing will slow down. It remains to be seen where people will put their money after that (if they have any).
I'm no economist or expert, but that visceral 'sense' of how things are, regardless of fact will influence a bunch of people's votes.
Yes, you are right. In some cases, it is a personal economic reality, but in others, the sense is derived from sensationalized news stories. The liberal mainstream media still has a firm grasp on many in this country.
It is every bit as bad as, or worse, than the left portrays. I've never seen anything like this before.