Through the last eight weeks, fixed mortgage interest rates have remained very steady, rising slightly.

Most homes unaffected by the weak dollar are sold in Ohio and California. Those states will be hardest hit by the housing crisis. Well, Florida too. Most states. Real estate is local, so contact your local Realtor.

The loss in asset valuation may affect mortgage loans and people's ability to qualify for them. As a result, the housing crisis will probably affect spending. Asset spending has been a big part of the economy for a long time.

Oh, yes. We have not forgotten high fuel costs (something we have commented on for months) (...and months). As folks spend more money on gasoline and energy, they are less apt to spend that money on other things.

Hey, I'm not Miss or Mr. or Mrs. "Gloom and Doom" here. It is just that some parts of the economy do not look good right now. If you have known someone who has been to Europe lately, ask them about the Euro. Heck, even the lowly Yen has scored twelve year highs against the dollar.

Actually, a "weak" dollar helps the U.S. economy by making our exports seem cheaper. Now if we could only get rid of excessive import fees, our own desire to over-regulate, and more.

We borrow from China. We "global economy" the life out of China, India, and the rest of Asia. If we did not have millions of people from Mexico, Central America and South America here, most of the "cheap stuff" would cost much more.

We are talking about interest rates because the economy is interest rates. And inflation.

So will inflation rear its ugly head in America? Well, it may go higher than it is right now. That's safe. Isn't it?

Fixed rates on mortgages may go up a little, then stabilize. Then they should head up a little more.

No one can guarantee economic or interest rate predictions, of course.