This is essentially correct.
When you super-saturate a solution, the solute (particles held in suspension in this case) will be forced out of solution (the air in this case) at a certain point (in this case, the dew point).
An interesting related note:
Cold air can hold far less water in suspension than warm. This is why the air is more dry during the winter time. Hwoever, in some areas this effect is countered by sublimation of snow.
Another interesting point:
When it rains, the air temperature will increase slightly. This is due to the breaking of many water-water hydrogen bonds as the water droplets fall. The reason it appears to be colder is because water has a high specific heat capacity (4.18 J/'C) and will conduct heat away from your (warmer) body (entropy).
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