I live in Tokyo and have just bought a house here. I think the average Japanese is cautiously optimistic about the economy now. I think there's reasons for optimism.I think the recovery looks pretty solid. Japanese companies have brought down debt, cut back loss making operations and invested heavily in R&D at home and mass production in China and elsewhere. Most people agree that the current rebound is very different to the false dawns of the past. Undoubtedly this will cause a steady increase in rates. This year the economy will probably grow 2%-3%, unemployment is falling and consumer confidence generally increasing. Also, last year land prices rose for the first time in 13 years. I bought now because I need somewhere to live and because I think land prices will edge up. It's also certain that rates will rise so to normal levels so I took advantage of the current low rate environment. I fixed my loan for 20 years at 3.25%. Hopefully, I won't end up with egg on my face.