When ordinary people feel the pinch they start slowing down their personal spending. They may put off the purchase of a car or a bigscreen TV, but they can also be easily lured back to the showroom or the mall by bargains.

Will the same hold true for housing? Interest rates have retreated to near record lows. Housing inventories are at 20-year highs. House prices nationwide have softened.

If that's not bargain-sniffing territory, I don't know what is.

But consumers can send mixed signals. They spent more money on Black Friday, the day after Thanksgiving which is widely considered an important benchmark of consumer confidence. But a new report says most were bargain-hunting.

According to ABC News and the Washington Post "consumer comfort" index only 30 percent of consumers polled believe it's a good time to spend their money. That's the lowest percentage for the index in 14 years.

The Consumer Conference Board, which performs its widely quoted monthly Consumer Confidence Index, found the same thing. The Expectations Index plummeted to 68.7 percent in November from 80 percent in September. The Board found consumers' apprehension "about the short-term outlook is being fueled by volatility in financial markets, rising prices at the pump and the likelihood of larger home heating bills this winter."

That explains why the ABC/Post index was down for the first of December.

In the meanwhile, bargains in housing have increased, and consumers are noticing.

Based on this week's Mortgage Bankers Association survey, loan applications more than doubled from the previous week, due to near record interest rates. The Refinance Index alone increased over 56 percent. This suggests that consumers know a bargain when they see one.

Look for the National Association of Realtors Pending Housing Sales report on December 10th. We'll know then if homebuyers know a bargain when they see one.

Published: December 6, 2007

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.