Consumer confidence dropped again according to an [ABC/Washington Post weekly survey [Marketwatch]](http://marketwatch.com/news/print_story.asp?print=1&guid={CA3BE9AE-1B58-411E-94A6-15495AA61DAF}&siteid=mktw”) The index was at its lowest since May 2003. A third of consumers said it was a good time to buy things, the lowest level since 1993.
This may create a pause in the housing market this fall as the public digests all the economic messages, mostly negative. [The Fed decided to raise rates today [Matrix]](http://matrix.millersamuelv2.wpenginepowered.com/?p=138) despite “distractions” caused by Katrina and are worried that higher energy prices were inflationary in the future.
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Although the housing boom, in the NYC market and outlying areas, may begin to slow due to the raising of interest rates and the lack of consumer confidence it may also encourage the following:
a)owners who have not yet refinanced to do so,
b)owners who have been sitting on the fence regarding selling to make the move for fear of lowering prices and
c)those who have been waiting for prices to stabilize and/or decrease enough for them to buy.