To the Stone Harbor spouter re: mortgage rates... I am not the Avalon spouter but I can answer your question for them... It's quite simple, the last 2 housing crises both had the same aggravating factor...a low or non-existent fed rate making loans affordable to those who cannot actually afford them. The higher rate keeps people like me from buying a house...because I can't afford one. Econ 101 is a great place to start.