Recession, foreign debt seen as wild cards for '07 recovery 
Mortgage rates could go up even if Fed slashes short-term rates
By Matt Carter, Monday, January 8, 2007.Housing and finance experts say lower interest rates and a healthy economy could help housing markets rebound in 2007.
But there's no guarantee that a surge in oil prices or another unexpected jolt to the economy won't send the country into a recession, with long-term interest rates soaring even as the Federal Reserve cuts short-term rates to encourage borrowing.
The slowdown in housing helped keep inflation in check in 2006, allowing the Fed to take a break from a string of 17 straight increases in the short-term federal funds interest rate since 2004.
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