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To: TheStockFairy who wrote (172660)	6/14/2002 8:31:09 AM
From: orkrious	Respond to of 436258

Correct me if I'm wrong please, but doesn't the price of housing have a direct correlation with interest rates? sure, that's one factor. but supply and demand play and even bigger role, just like they did when people would pay $400 for YHOO. people today view housing as a good, "safe" investment. consequently, they haven't cared what they paid, because they thought there'd be some other sucker to buy it at a higher price when they are ready sell. people could also afford a bigger and bigger house since their prior house was a leveraged investment. they put down 20% (or less), then in a few years they take the large gain on their invested capital and put a much bigger down payment on another house. already some are bringing cash to closing here in Michigan.