What would we do without optimists?  I think that he is about a year off on that call.  Furthermore, I don't think the Fed rate cuts will do much.  The Fed controls the overnight lending rate and I don't see that affecting the 30-year mortgage market.  We have too many investors that are way too afraid of the market right now and they aren't going to jump back in until the rates go up enough to make it an attractive investment again.

But... I'm no economist.  There may be some psychological changes that occur due to the Fed rate cuts, and it may improve the economy generally.

Best,
Robert A. Franco
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