Demand is likely to remain strong for a while. Households know bargains when they see them, and they assume mortgage rates like these may not be around for a long time.

Demand is as strong as ever and is likely to remain so. Prices are starting to weaken, but volumes can now increase.

Fixed mortgage rates remain at historically low levels and thus should continue to fuel reasonably strong housing demand and, through equity extraction, to support consumer spending as well,

Who knows when and exactly what the catalyst is going to be. End demand is not as strong as what some of the components of the technology stock market would suggest. With valuations where they are right now, there is some near downside risk. But unlike where we were last year where we fell off a cliff, we might fall off a curve.

The manufacturing sector ended the year with some decent momentum that should carry it through the first part of the year.

The pull back in housing remains orderly, at least in the existing market. But the red flags are up. Inventories continue to rise and that is a warning that prices cuts could be coming, and soon.