I don’t think Bush’s proposal or Bernanke’s rate cut will do much to help out housing, instead, I believe it will do exactly as it was designed to.. to calm sellers nerves, and give them hope, whether false or not. This will boost consumer confidence a bit.

How will this affect our local RE market.. perhaps it will actually cause MORE inventory. Sellers will think that they may be able to sell their homes, and be motivated to list. IN reality, fixed rate loans won’t go down much, buyers will still be small in numbers, and few in socal will really benefit from either.. what worries me though, is how this could be a preview of an even bigger and more destructive bailout and inflationary policy in the future.