Double Top in RE Market?

[Sean Heath]

I'm curious what the current sentiment is in the community in regards to a possible second RE market top? Prices have rebounded significantly here in CA with interest rates still at all time lows. With the fed moving to raise interest rates next month (which is highly doubtful), does anyone feel this may have a 2008 effect on new home buyers that have entered in the last few years and are probably stretched in terms of what they can afford? I know they only plan to raise 1/4 point, but mortgage rates key off the treasury bonds which move independent of the fed. The general stock market has also seemed to have reached escape velocity and may be topping as well with the S&P, Dow, and Nasdaq struggling to make new highs?