I'm optimistic. How can't I be, home values will eventually be on the increase again and I really do think we're close to that time. I can remember almost 2 years ago hearing that we were in it until at least 2009. After watching this video, I can see how this whole process really did need to take the 3-4 years it took to readjust.
I was one of the ones who took out a 7/1 ARM mortgage the summer of 2005, knowing it was the riskiest I wanted to get, but well worth the 5% I did get. Now I'm on the look out for the best time to refinance. It's like the stock market...how low will it go before we hit the bottom in this period of low rates, and isn't it just good enough if we refi and get lucky enough to get a low rate still? Sure, it will be hard to beat our 5% rate, but I think I'd be dumb to wait around for it as rates go back up.
As for the first time homebuyer's tax credit, this is great! I don't know if these buyers are aware of the actual benefits to them as a result of this. Now would be a good time to speak to an accountant to help with better understanding this.
I'm really excited to see what will come ahead in 2009. I know a lot of people are having trouble right now, but everything had to adjust. Prices had soared too high in the housing market to be sustainable, and still are in other sectors today.