Come next month, some of the cheap loans that got U.S. buyers into homes they might not have otherwise been able to afford are expected to get far less cheap. Adjustable-rate mortgages, which offer lower rates for an initial period, already are resetting. But the Mortgage Bankers Association estimates October through December will bring the peak of these new, higher rates - and pricier mortgage payments. Such adjustments could spell continued trouble for a sluggish national housing market.

I think this will be a major concern, even with the Fed lowering rates and offsetting some of the pain. This will play a major problem in out markets for a while. I believe this could get us continuing the down trend of the Real Estate market cycle below...

The Pacific Northwest, including my areas of Kent, Auburn, Covington, Washington should fair better than many areas, but it could be a bit painful as prices adjust. How do you think your area will do in the coming months or years?