Wednesday, December 31, 2008

The New Waiting Game

A large number of aspiring home buyers spent 2008 on the sidelines, waiting for a declining market to bottom. Hoping to avoid the sort of boomerang or upswept tail that often marks the end of commodities corrections.

Perhaps unexpectedly, the wait for the pricing nadir has been displaced by a new resolve--the wait for the rate nadir. Despite gobs of government spending and potentially inflationary outlays, rates continue to languish delectably in the low fives, stoked by the Fed's anti-hoarding, er anti-savings tactics. Might a limited time 4.5% purchase rate be in the offing as rumored? The possibility has even pusillanimous purchasers coiled like a ravenous panther.

Me, I'll probably play along, and exchange paper for a hard asset. You know, something with an inglenook, or a sleeping porch, or a whole lot of rosettes.



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