I’m sure there are plenty of folks on the sidelines waiting to buy. I think there have always been plenty of folks on the sideline ready to buy. The question is how many of them are qualified buyers? With underwriting standards making a comeback, the “REAL” demand will be weak. PIGs for the most part are the responsible folk that have enough cash for a significant down payment, solid FICO scores and good income. PIGs and PIG types will benefit, however, as indicated in my original link, a rate cut will not help aleviate the pain of the downward spiral.

The point of posting the link to the interactive yield curve was to demonstrate (simplisticly) that a rate cut didn’t help the housing market during the last downturn of the 90’s.