I) The new normal: Stocks are down and more bad news is in sight, due to the recession we're not in.  Bonds usually react the same way stocks do, so bad news is good news for 30, 20, 15 and 10 year fixed rates.

II) Experts are looking at fixed rates to be in the low to mid 5s by the end of the year.

III) The estimated annual cash on cash returns for residential 4 plex properties with 5-10% down has finally hit 25%, not including the additional incentives of principle reduction, tax benefits and the ability to leverage the downpayment.

IV) Rental demand is strengthening as credit is tightening, supporting the multi-unit cash flow investment model.  Lower fixed rates also lend support, as well as the rehab/fix-up model.

For the credit-worthy borrower, it is becoming prudent to analyze the Warren Buffet model of watching the public fear factor as to when to purchase assets and vice-versa for selling the assets.

Finally, Phoenix has re-arrived at the 20th Century cash flow formulas that worked for principle-reduction and asset ownership.  Did any of us think this would happen again... in the 21st Century?

Andrew Schmidt, Nations Home Funding BK0905991