Wednesday, January 2, 2008

Happy New Year!



Reality check for prices


Reality check for prices

COMMENTARY

Fed gives market its lump of coal

December 23, 2007

BY JOHN F. WASIK

The Federal Reserve's quarter-point cut of its benchmark rate to 4.25 percent last week looks like a big lump of coal in the stocking of the U.S. housing market.

While some buyers and refinancers might benefit, home prices could be headed for more declines in the most overheated markets, no matter what the Fed does.



It is more to do with housing prices way to high in comparison with wages. Period.

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