CAP rates have moved up some last quater. The Fed now seems to be thinking of rate cuts in overnight funds rate...maybe in 1st quarter '07. What will this mean for CAP's? Will they again begin to move down? Probably not soon...at least until the Fed plays it hand and actually begins rate cuts. CAP rates lag Fed moves...and there is more to a CAP rate than just Fed rates. Some investors see CAP rates as an "art" and not as a "science." Real estate investment profit is made at purchase....not at disposition.