Consumer spending was up and inflation numbers eased.  Good news for the economy and for home loans. 

The batch of new reports yesterday offered some reassurance that the current economic expansion will not be derailed by the continued troubles in housing and the severe credit crunch that roiled financial markets last month. Consumer spending, which accounts for two-thirds of total economic activity, is considered the key to whether the country avoids a recession.

We definitely don’t want a recession, and if inflation is in line then home loan rates should stay steady.  The biggest factor in affordability for homes isn’t price.  It is interest rates.