"My question is: can the economy really be as bad as the Democrats say when the housing market, at least here in the Philadelphia area, is still robust? Is housing a leading or lagging indicator?"
Housing is always first based on location, location and then, location
If properties are selling in days (hours here on the W. Coast) then the market is hot and it is not a matter of the overall economy
Supply and demand rule -
BUT
Look before you leap and a "real" home inspection is an ABSOLUTE !
5.75% is a good rate - any points though ?