When will Housing hit bottom? The million dollar question. Knowing what we know about the real rates coming down or possibly going negative, I could confidently say yes it has bottomed. But things can change fast and if gas prices and fear of economic chaos diminish, I feel that reduction of inflation expectations would trigger the downturn. So backwards from how people see the economy. The elevated inflation expectations lowers the real rates making the economy less restricted and the finacial system could possibly find themselves negative with the real rate, stealth stimulus.