According to an interest rate watcher Keith Gilabert rates are expected to stay low due to the increase supply of capital to the realestate market. If you look at what the Fed has done in the last two years is raised rates 9 times and the rate on a 30 year mortgage is only up a .50 point.
Greeny is in a pickle. Raising rates further could hurt the US economy in unforseen ways after Katrina. Not raising them, RE prices keep going thru the roof. Tough choice.
This market is in tech bubble II. I suspect a lot of companies are trading far more than they are worth but it's gonna take a few earning seasons for that to be confirmed. Wal-Mart should be hit hard thanks to inflationary pressures due to shipping costs. Their customers will also have less to spend also thanks to higher gas prices. If Wal-Mart is having trouble, so should a lot of other companies. Anyway, looks like the 15-year mortgage may invert against the 30-year. The world has finally gone mad!