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The National Association of REALTORS has changed their 2007 housing forecast for the worse, as reported by CNNMoney and other news sources.

Four weeks ago, this would have been terrific news for mortgage rates shoppers.  Today, not so much. 

Mortgage rates are only slightly improved on the day.

Why?  Because the housing sector is decoupling from the mortgage-backed securities market. 

Despite ongoing weakness in housing, consumer spending surges ahead.  It's now apparent to markets that housing will not slow down the economy as the Fed had predicted (and communicated) in its four press releases earlier this year.

Just yesterday, in fact, Fed Chairman Ben Bernanke alluded to the monetary policy-setting group's reduced focus on housing, stating that inflation risks "remain to the upside." 

For a succinct breakdown of NAR's second revision to its 2007 forecast, check out Inman Blog's bullet-point comparison.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.