CLARKONOMICS: While there's no shortage of down news about the housing market, Clark believes we've seen the worst of the bad news already. But don't expect everything to suddenly become sunny. Rather, it's more like we've gone from absolute downpours to moderate showers.

For starters, the banks are reaching capitulation. In California, for example, foreclosures are again attracting multiple bids. That's a clear sign of the market stabilizing. Note that word: "Stabilizing" -- not "recovering." We're getting back to where market values are based on fundamentals, not speculation.

In related news, the new housing rules have a controversial measure to create land banks. These land banks would take areas that are blighted and turn them around, but there is a potential for corruption.

Whatever happens, you can be sure it won't happen in a day. Some markets do have more to fall, like condos in Miami and single-family homes in Las Vegas and Phoenix. But much of the rest of the country never really had a bubble to begin with.

Remember to study the market and not overpay. Know your max price and don't pay more if you're in an auction scenario.

Meanwhile, mortgage rates have recently climbed -- just about the last thing the market needed! But here's an important reminder: If you can buy at a great price, it may still be worth it to pay a higher-interest mortgage for a few years. The purchase price is set forever, but interest rates can be refinanced down the road.