Thought I'd share FYI:

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Subject: Greenspan Speaks about housing

The Chairman's comment about housing and risk imbalance is similar to that famous comment years ago about `irrational exuberance."

His warning: housing loan `liquidity' (mortgages liberally available at low rates, considered low risk to lenders) can change `overnight', causing the housing market to constrict and become much less attractive.

Tighter money is likely to result in a trend towards slower home sales and turnover, lower home prices, along with the potential for higher mortgage carrying rates and an increase in bankruptcy filings ( bankruptcy laws are soon to change and are far less forgiving ).

He thinks home buyers/owners should become cautious/more conervative.

My thought would be to `lock in ' these low mortgage rates by converting from the no-interest and variable rates to a fixed despite the higher monthly carrying payment.