This topic is SO over done. For those of us with a large cash position, or decent equity to put down on a house, rates going up will still help us, plus you can always refi later when rates go down! So save up some cash, stop worrying about the payment, and enjoy the rate hikes, as they bring the market down.

I was mainly addressing the crowd counting on a 50-60% decline, but doesn't have sufficient cash saved up… I mean, yes it's possible for a 50-60% decline…But judging by some of the comments, I doubt some of these folks waiting for that 50-60% decline, have a large cash position built up. (Not all, some do, but a lot don't), nor will their savings keep up with inflation from other expenses.

Personally, I won't be buying another home until a good portion of those baby boomers start selling their homes to pay for their golden years expenses. Probably not until 2012+. I don't personally think we'll see anything of greater magnitude until a large portion of the baby boomers are selling their assets to sustain post retirement.