I’ll follow the advice of the Pimco guy at the end of the story. They are the authority on bonds and have said since last spring that the Fed Funds rate was headed towards 3% or lower. The Fed and Washington DC in general are all over housing right now and will do whatever it takes to keep mortgage rates low until the majority of subprime mortgages get refi’d or froze and the inventory overhang of new homes gets worked through the system. The easiest solution is low mortgage rates. It might take another 2 or 3 years, but you can be sure this is the #1 economic concern and despite the overall incompetency of our government, when they set their minds to solving a single problem without partisanship, it usually gets done.