I am not so sure that these low rates will drive prices up as much as a lack of inventory. To me the inventory is just the killer here. Also the economy still sucks. No matter what it sucks and sucks and sucks. Unfortunately there are alot of people here in San Diego with money.
I can tell you first hand the trustee sales now are like a swap meet. It is amazing how many people are there and how high the bidding is going.
So yes the rates are certainly not going to hurt things. I do still believe we are in the midst of a rally that is now almost 9 months old. It is what I would call a squishy rally. Yes it was brought about by lower prices but it was sustained by poor inventory, low rates and subsidies. I think it will continue in that manner.
