A 3% 30-year Fixed-rate Loan?

The job numbers came out today and let's face it, they stunk: A small gain and fears that growth is slowing. The strange thing (as well all know) is that corporate profits are damn good and the auto sector looks like it's thriving. Heck, The New York Times recently published a story about how artists are flocking to inner city Detroit because of cheap housing and plentiful vacant land for their art 'installations.' Anyone who knows anything about urban gentrification knows that artists are the first wave to improving home values. But let's state two obvious things: when it comes to economic predictions most economists are dead wrong. Few predicted the housing bust and one (formerly) well respected housing economist for the National Association of Realtors even wrote a book about how home prices would keep going up forever. (No need to name that individual. We all know his name.) But let me state one thing that I believe wholeheartedly: homes sales (new and used) are flat lining — and despite the fact that I think we will see a 30-year fixed rate loan at 3% soon. The U.S. will see no major improvement in the unemployment rate until home building picks up in earnest — or Baby Boomers start retiring early, leaving their jobs to someone younger. And you can't buy a new home if you don't have a job. That's what we call a conundrum...