Fed Holds Firm

• The Federal Reserve tried to have it both ways yesterday, leaving
  short-term rates right where they were, but talking about getting tough
  with inflation. That leaves the Fed rate at 2%, making the Prime Rate
  6%. As you know, because you are a faithful reader, Fed Rates and
  long-term mortgage rates do not have that much to do with one another.
• The long bond traders hated the news initially, but the stock
  traders hated it even more and by the end of the day we were back flat
  and repricing to the better.
• So this morning we have the first tick down in certain rates we've seen in a month.
• National Association of Realtors data this morning shows a 2%
  increase in month-to-month sales volume for houses, most of that in the
  markets like Vegas and the coasts, where house prices have dropped
  significantly. But again, it's a sign of increasing activity.
• My take? We're on the housing bottom. There will not be
  significant national drops in home prices from here. It's not going to
  get worse than it is. It is, however, going to stay bad for another
  nine months, so there's a significant buying window here. Not that I'm
  a real estate expert, mind you.
  
  

Same recommendation today, if you're going to buy, buy. Don't
try to time the market. It's a fool's game.