The Federal Reserve gave us a .25 basis point cut as a treat on Halloween but their comments were more like a sour apple.    The stock market and the bond market had already factored in a .25 basis cut but what everyone didn't factor in was the statement that followed.  The Fed gave hint that they may be done lowering rates for now unless the housing market and economy worsened more so then the threat of inflation due to higher oil/gas prices (over $90 a barrel) and higher food costs via the demand for corn and ethanol.
The stock market realized this on Thursday November 1st, 2007 with the stock market selling off nearly 400 points.  In one of the worse sell offs of the year.  I believe that there are still issues with the housing market that could threaten the overall economy.
There are still billions of dollars of mortgage loan resets that will be happening between now and the end of 2008.  This will increase the amount of foreclosures which could drive inventories higher and prices lower.  The areas that seem to be hardest hit here in Southern California are the Inland Empire, San Bernardino and Riverside Counties. 
I continue to see investors and buyers steping in and buying great deals on distressed properties here in Orange County.  If you are interested in taking advantage of the current market condition please contact me and I can help you with my foreclosure system.  Being part of the Prudential foreclosure and REO team it gives me incredible access to distressed properties for my clients giving us the advantage in finding the best deals in Orange County.  Please contact me at 888-877-6062 for more information regarding foreclosures and how I can help you prosper.