However, historically it takes 8-10 years for inflation adjusted prices to reach their previous highs.While I agree with you that we won't recognize the bottom until after it has occurred, we certainly are not there yet - not even close.Mike

On the other hand, lower short-term rates could spark inflation which would rase the rates on the 10 yr bond and therefore mortgage rates.

In addition to that, their inflation rate is running just below 7%.

Historically, housing prices have risen at about the rate of inflation.

I believe inflation is on the way and for my money, a home purchase is a great longterm hedge against inflation.

It seemed that the flippers inflated the prices of the modest homes purchasing them way above what I deemed a profitable price.Regards,MJ

The Fed’s rate cut could cause inflation to rise and the treasury markets will react with falling treasury bond prices which causes the interest rates to rise.

Hopefully this income statement isnt too overly inflated.

If you look at the blog James references, it appears the activity discussed all involve activites that are explicitly fraud:Fitzgerald - inflated values on purchase to defraud lenders.

donflips -- Thanks for the motivation.Yeah, I found out from public records that this house is owned by Washington Mutual and yesterday their shares took a dive of 17% in addition to the annoucement that NY attorney general may bring charges against them for pressurizing the apprisial companies to inflate home prices.I just keep looking for any reduction in price and sadly the place where I live there ain't that many reo which sit for more than 4-5 months.