There's a "bubble" in certain locations around the US, but not everywhere.
Oh, and existing home sales are up...
I refinanced 4 yrs ago at 4.75 for 15 yrs. Many of my friends have refied a couple times and taken equity out each time, and a former employee of mine in Las Vegas is driving around in a new mercedes he bought with the increase in 'equity' in a home he has owned all of 18 months. There are tough times coming in some, but not all markets. Northern California is ripe for a correction, as most of the loans there are interest only and the like. Here in the midwest, prices have not appreciated as much and people are generally more conservative with their finances.