Interest rates rising again.

This was inevitable. Looks like we are going to creep into the 5% range. It was the perfect time for a small window. Now we'll see how it goes with a double dip looming.

http://money.cnn.com/2010/12/30/real_estate/mortgage_rate_spurt/index.htm

"Keith Gumbinger of HSH Associates, a provider of mortgage information said that the market reached a new plateau.

"I don't think we're going back to a 50-year low anytime soon without an economic collapse," he said. "Rates will probably never revisit those levels."

The increase will push mortgage payments higher for homebuyers. When rates rise from 4.25% to 5% it takes away about 9% of buying power, according to McBride.

"That's nothing to sneeze at," he said. "But it's still small relative to the steep drop in home prices over the past few years.""

Here's an interesting question. At what point will our housing value, if ever, will reach peak 2003-2005 pricing? I think it isn't absurd to say 10 years may be a possibility. I don't think that the real estate market has EVER seen this type of sustained downtime in history. We are truly looking at a four year period of tumbles and no end in sight?

At least it's a new year =).