When the feds cut rates, it is like throwing fuel on the fire, and then it becomes a vicious cycle of when to rekindle the fire to keep things moving.  Rates will go down, I am sure, but buyers will not just jump to make the purchases as the public is not ready to buy a home that they have no clue what the value will be a year from now or even longer.  Investor's have even come to the conclusion the quick and easy purchase is not what it use to be.  It is going to be an interesting year to see if we can dig our way out of the housing mess.  You know when you think of it, the mess started with the non conforming loans.  Those loans were not that much of the portfolio to choose from when making a purchase.  Other loans were available and clients took advantage of those secured loans, ie, fha etc.  We have been beat up hearing how bad the market is due to the media as well.  Enough ranting, I am done, good info you are letting us in on.  Take care.