It looks like the bottom may be in on the long term interest rate front. Both Treasuries and Mortgage rates have been steadily marching up. The Federal Reserve clearly indicated that their current policy is geared towards keeping rates low while stimulating the economy. Well, the $69 question ..... is the Fed failing in their own mandate? Answer..............yes and no. How do you like that for an E-Media spin? Even though mortgage rates are around 5% and were in the 4's would you consider that high? Come on gentle reader they are still low. Will a gentle upwards projectory get some of the fence sitters off the sidelines...you bet. If they jump down off that fence and buy a home will that help stimulate the economy? You can answer that one for yourself. Congrats Ben B.......job well done.
Things are definitely getting better, albeit slow. However, remember that the smart money will have already bought their home overlooking the ocean and sipping a libation by the time CNBC calls the bottom of the housing market. Sooooooo watch those high end real estate transactions, they are the leading indicator.
