Well, we finally got to 4.5% on a conventional, 30 year fixed mortgage.  This recent move downward in rates seemed to begin shortly after President Elect Obama outlined his stimulus package. And today's push clearly is in reaction to the jobless claims number reported early this morning.

Quoting an article written this morning in the Washington Post, " President-elect Barack Obama seized on today's report that the economy lost 524,000 jobs in December to renew his call for quick action on a large economic stimulus in order to prevent the economic situation from worsening significantly."

"Clearly, the situation is dire, it is deteriorating, and it demands urgent and dramatic action," Obama said, noting that the economy lost jobs in every month last year, with 2008's total job losses amounting to 2.6 million, the biggest drop since World War II."

"What we can't do is drag this out, when we just saw half a million more jobs lost," Obama said. "You know, the American people are struggling. And behind these statistics that we see flashing on the screens are real lives, real suffering, real fears. And it is my job to make sure that Congress stays focused in the weeks to come and get this done. And I have every expectation that we will get it done."

Yes, many people believe that a big part of the stimulus package will include supporting the housing market...or supporting those who own homes and are having trouble making the payments.  I have to agree.  But the housing market as in all other markets has its up and downs.  And if you believe in the in a free economy, it too will straighten out and bounce back over time.  The bond market is telling us at least for today that it may take a bit longer for this recovery and rates need to go lower to help the healing process. 

Some of us feel the housing market has already bottomed due to increased activity and why not?  We may remain flat for a bit but the activity has for sure picked up since the Fall.  The cost of money is pretty darn cheap right now, there's plenty of value...folks at least have to take a look at what's out there. 

So, are mortgage rates heading lower...are home prices heading lower, maybe.  But at 4.5% either you're buying or refinancing.  And this, is ALL GOOD!