Freezing Temps, but Thawing Interest Rates...

Interesting parallel between lowering temps outside and lowering interest rates and bond yields. Obviously, neither has anything to do with the other, but it does create an interest dilemma for potential home buyers, especially in the Midwest. Historically, January and February are the slowest months for the real estate market because most folks are hesitant to brave the winter to look at new homes, or would prefer to look at properties while they're not under a foot of snow. However, with interest rates at their lowest over the past 6 months, it may behoove potential homebuyers to get serious about their searches sooner rather than later. The Fed has announced that it will further reduce it's bond purchases this spring, so by the time the spring real estate market hits, interest rates will probably be on their steady ascent to more historical norms (6-7% range). 
Perhaps sellers can also take a cue from the markets and accelerate their plans to list their homes. Inventory of non-distressed properties has been at a 5 year low, so even when buyers do hit the pavement, they're not seeing the variety of homes to their liking. It's anticipated that bank owned "shadow inventory" will increase gradually, so perhaps that will help spark a more consistent real estate market, though the fear of softening value/equity is always present when large increases in inventory occur. Hopefully, REOs will continue to monitor demand before making such releases. All in all, this should make for a very interesting 2014 real estate market, one which optimistically should help strengthen the broader economy.