The Fed's Minutes can be read at: http://www.federalreserve.gov/monetarypolicy/files/fomcminutes20080130.pdf. )

To quote again from Economist John Mauldin, "The minutes from the January Fed meeting are quite frankly bearish. In just one paragraph on the housing market, they used the words "fell," "plunged," "dropped," "moved down," "declined," and "restrained."

Reading these minutes, you get the distinct feeling that this is a Fed that is very concerned about the immediate future of the economy. You can take it to the bank that there will be more rate cuts. A 2% Fed funds rate by this summer would not surprise me.

The possibility that house prices could decline more steeply than anticipated, further reducing households' wealth and access to credit, was perceived as a significant risk to the central outlook for economic growth and employment."

Thanks, John, for another honest forecast into how the Fed will respond to the national quagmire brought on by the real estate market changes.

Fortunately, it presents a much needed, different purchase climate with some rates tied to the 3% and dropping Fed, and the values that top-rated Phoenix/Mesa MSA offers for the long term in growth.

Yours for long-term success, Andrew Schmidt

Nations Home Funding BK0905991 ACSchmidt4@aol.com