Confirmation?

Today's news is a real vindication of my study. As mortgage rates continue to decline to record lows, real estate prices continue to sink. This would seem counter-intuitive, but it non-the-less frequently occurs.

However, I have no doubt that the decrease in mortgage rates will eventually provide a lift to the real estate market. The stock market has had a nice rebound, possibly signaling that the worst is over. It has been quite some time since we have had a headline about a major bank failing. All of the steps that the government has taken and the nature of the business cycle will, I believe, improve economic conditions in 2009.

Happy New Year!