Equities are taking a huge hit. Maybe this is expected, after all, the Santa Claus rally sure was good to investors but like all rallies from the big guy in the red suit they don’t last. There are two primary factors at play—oil and the European economy.

According to an article today on foxbusinessnews.com,housing to lead the way in 2015  both the Dow and the S&P 500 suffered their steepest drop today in almost a month’s time with the S&P 500 down yet again for the fifth straight day, something not seen in more than a year. The Dow’s gloss is dimming as well, closing at 17501.65, down -331.34.

On the other hand, there are some positive forecasts for our economy this year and it relates directly to housing. Investors worldwide know there are few places to safely invest. The first being U.S. Treasuries and mortgage bonds. No, the yields are rather small but they’re predictable and they’re safe. And with recent economic reports showing a healthy economy, despite recent losses on Wall Street the Dow is still well above 17,000 and the S&P is 20 points higher than the 2,000 mark. The two most recent GDP reports showed strong growth and if December’s jobs report is as rosy as Novembers, it will be even more convincing the economy is on strong footing. In November, there were 321,000 new jobs created.

A stronger economy means more jobs and advancing wages. If interest rates continue to stay in their current range (you can find a 15 year fixed rate at 3.00 without points) we’ll have both a strong housing market and competitive financing. Lower rates means more people can afford homes and if the builders and developers can keep pace, housing costs should still remain within reach. Granted, that’s a lot to bank on but it does make sense. Wait for Friday’s unemployment report and see how global markets react.