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Despite the economic gloom of the past few months, there are some positive dynamics taking shape in the current cycle.

• Low Mortgage Rates—Mortgage rates continue to hover at 50-year lows – 5% and even 4.75% for 30-year mortgages, and still lower for 15- and 20-year mortgage terms.

• Improvement in Oil Prices—We’re all paying a lot less at the gas pump, and seeing sharply discounted prices on retail goods and autos.

• Saving Money—Americans are actually saving again, the national savings rate took a nearly 3% jump last month. That might sound small, but it’s hugely important if it is the start of a trend.

• Action on Capitol Hill—The incoming Obama administration is expected to introduce a massive economic stimulus package early in 2009. A resulting improvement in the employment picture and available credit can help restore consumer confidence and spike a surge in economic activity.

• Coming Price Stabilization—Some economists are expecting housing prices to stabilize and/or rise (in 2009) after a likely boom in mortgage refinancing as rates fall and loan applications increase. There are signs that housing prices are stabilizing in some parts of the country. The latest monthly Federal Housing Finance Agency index found home prices up by 0.6% in the Mountain states and by 0.2% in New England.

* All down-cycles tail come to an end. Keep your eyes open for the small positive signs that are accumulating out there.