The Cost is More Important Than the Price
Buyers are often advised to look at the COST of purchasing a house more than the PRICE of the home. Obviously, price is part of the cost equation. The other piece, assuming you are not an all cash buyer, is the mortgage rate. The mortgage rate to finance a purchase can have a dramatic impact on the overall cost. Recently, there are more people talking about the possibility that mortgage rates could begin to increase.
HSH.com studies trends in mortgage rates. They explain: “A better economic climate almost always brings higher rates, and a lessening of the troubles in Europe from massive central bank assistance adds to the movement of money from safe havens to more risky assets, driving rates upward.”
At the end of the day, we don't know what is going to happen. What we do know is that things move in cycles and the Real Estate market is no different. These rates won't be here forever and it is unlikely that we will see rates this low again in our lifetime.