New Year Begins with Tempered Optimism (Financial VIEWS‪)‬

Commentary As 2006 came to a close, the U.S. economy headed for a soft landing. The general consensus was that the economy would recapture lost momentum. In 2007, the housing market will continue to draw attention. This factor will likely mitigate the downside risk the sector could face if a recession occurs. Further, the economy is expected to pick up steam in part from anticipated declines in interest rates. This is good news for the real estate markets, which could use some help to increase net income and bolster yields from the historical lows that have characterized the market for the past several years.