Americans Know a Bargain When They See One!!

THE GOOD NEWS

Strange as it may seem, the one segment of the economy that gives us
cheer is housing. Housing has been the weakest sector of the economy
for some time. However, mortgage applications rose 112% last week --
the biggest percentage gain in history. Refinancing also leaped upward
by some 203%. With some trepidation, we are inclined to say that the
worst may be over for housing.

Moreover, the stock market seems to agree with us. With stocks like
Masco (MAS), a Growth Portfolio pick leveraged to the home-building
industry, leading the market higher, housing seems to be emerging from
the doldrums.

We also note that October's figures showed houses to be more affordable
than any time in the last 20 years. Today, with the Federal Reserve
buying up mortgage-backed agency securities and forcing mortgage rates
lower, we expect affordability has reached a record high. Housing
prices have also come down a huge amount. Americans know a bargain when
they see one, and will surely increase their buying thanks to record
high liquidity.

Housing was a significant catalyst for the downturn in the stock market,
and we believe a turnaround in housing is a needed catalyst for an
upturn in the economy. We are not about to stand on a soapbox and shout
that the worst is over. However, the improved figures from the housing
sector are certainly a positive sign.









Christine Dawson
Mortgage Consultant, Retail Mortgage Sales
Wells Fargo Home Mortgage
M6575-011
2350A Merrick Rd
Bellmore, NY 11710
(516) 409-2880 Tel
516-445-0521 Cell
1-866-892-7154 Fax
Christine.B.Dawson@wellsfargo.com
www.cbdawsonmortgage.com
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