Fed Please Stay Away

Implications: The author suggests that since there is a greater than reported downturn in housing, the Fed should act soon and cut rates.

Analysis: I think it would be wrong for the Fed to cut short term rates.  Easy access to financing and the historically low short term rates were part of the reason for the historically unprecedented rise in home prices in the Washington DC region.

Yes there will be some pain for a while.  However, tt is important for the market to return to normalcy on its own.  Fiscal policy to sustain a market where affordability of housing has become a real problem in a region may soften the blow for some but in the long run it would prevent the market from returning to normalcy -- and increase the pain for buyers.