But because the turnover of homes is so much smaller than that of stocks and because the underlying demand for living space tends to be revised very gradually, the speed and magnitude of price rises and declines often observed in markets for securities are more difficult to create in markets for homes.
This decline suggests a gradual increase in money market activity, at least for very short maturities. The fact that we have taken on additional risk is no coincidence. Whenever liquidity dries up because market participants are reluctant to lend to each other, the central bank has to step in, but at the same time not put its reputation at risk.