Will the real estate market "crash" like it did after Sept 11, 2001? I hope so!

Almost everyone said the real estate markets would crash, or at least slow down tremendously, after the Sept 11 terrorst attacks. Realtors and mortgage brokers were afraid that difficult days were ahead. In fact, for about a month that was true.

Mortgage rates went up, buyers sat on the sidelines, and sellers panicked. Then in about November, the market started picking up steam into the biggest real estate boom in history. Rates came down, buyers begged for properties, the Fed lowered the discount rate, and the market took off like a rocket.

Today feels something like the events of Sept 11. The market is down. Congress is in a panick. The news is all bad. I hope it all turns out like it did last time. The Fed is expected to lower rates again when it meets this month, to loosen up liquidity and start the flow of loans.

Mortgage rates are currently well under 6% again, and the economy is slowing just like it did post 9/11. People are afraid of the stock market, just like post 9/11.

We'll see if it has the same result on housing...