At least this has been the identifying cycles of years past. Will it work again this time with so much pressure on housing prices brought on by the collapsing financial markets? It is a question everyone seems to have an opinion on and those opinions are as varied as are the shades of white paint.

Rates are now well below 6% for all conforming loans and under 6.75% for Jumbo loans. The loan limit amounts in the conforming categories may be about to change upward making the costs at least on a monthly payment basis, less. While the rates do not reflect the add-on of points and certain lending charges, with these lower rates will Buyers and Investors move off the side lines and jump back into the market?

My prediction is that they will and with the amount of deferred demand, we could see some drastic numbers reflecting increased sales in many of the markets across the US.

The one caveat that must also be factored in is the increased difficulty in acquiring these loans. With tighter guidelines in play and the new more stringent guidelines for qualifying, the big increase in the numbers of sales may still be ways off unless and until investors supplying the money for these loans feel more confident in the general economy and lenders make the process a bit easier for qualified Buyer to buy.