"The Fed intends to stay on its path to higher interest rates, Greenspan tells Senate panel, saying the central bank is still on alert for higher prices."

Also, new home building falls 8.5 percent in June and building permits were down the most in 10 years.

That makes sense, it had nowhere to go but up. and rising interest rates could be seen as a sign of a recovering economy, as the lower rates we had showed signs of desperation as an indicator for everything from consumer spending, to the deficit. Think Wal-Mart. When the prices go down, why do they go down? When the interest rates on home loans go down, why do they go down? Too many houses, not enough buyers. Price (which is represented here by interest), controls the flow of money, which controls the overall attitude, when it comes to the economy of the average joe. While it will hurt the market in the short run (due to bad education) It is a pretty decent indicator of a strong recovery down the road.