Lower rates should stimulate other consumer areas. We think building materials, as a result of continuing housing demand going forward, should do well. We actually think we'll see more demand for autos.

Lower prices are likely to stimulate increased demand, but to what degree is unknown.

It boils down to housing affordability; mortgage rates have risen, but they're still historically very low, ... We're continuing to see people who had been sitting on the fence jumping in to take advantage of these low rates before they go back up.

With demand still weak, there's room to cut rates in the first half of next year. That'll keep yields around 4 percent for 10-year gilts.

I suspect that the HP surge ... is essentially the result of it moving forward smartly in the U.S. consumer space and taking up the share left by IBM, and also by the other vendors that left U.S. retail in 1999.

There's already been a considerable softening in housing demand which preceded the recent rise in mortgage rates. Which leads me to believe that the weakness at a minimum will continue, and may likely accelerate.