SD Realtor, since most loans and refis in San Diego are Option ARMs and I/Os, the Fed Funds rate is more important than the 10 year treasury. So I was just wondering if reviving the exotic lending sector would help housing.
Bugs, how do you perceive buyer psychology? People are still buying homes in San Diego every day, although I wonder when that will slow down.
rseiser, homes prices in the Midwest are falling already. The median price in the Midwest was down July 06 vs. July 05. Places like Omaha, NE which never saw a run-up are under negative pricing pressure, although the inventory glut and use of ARMs has not yet made prices fall. But the auto states and Colorado are having big problems and that’s where the biggest price drops are occuring.
