Value Microcaps Pick Six Lotto 06

[littlejohn]

Hhmm, surprised that there has not been a drop in rates at this point in the contest...Forget the liberal, help 'em all out, mumbo in the sub-prime loan sector...Most have known for awhile that the lending practices were more like fishing with a net than fishing with a reel to do as many mortgages as possible...

The effective rates for good borrowers determine the price affordability range...It has diminshed a lot each time a .25 basis point was increased...Still looks like it will take somewhere below 6% on the 30 year fixed mortgages to bring some stabilty to pricing for the residential market...How far below that mark will now likely take more lower end stimulation than it may have ony a month or two ago...

Bad news weighs on sentiment...Buyers are likely to react to lower rates in the prime end of the market at some point...When rates come back into their own comfort zone...perhaps, But, of course, only one simple Conservative, opinion...LJ