The cost of a home has two major components: the price and the expense of the financing. Unless you are paying cash for the house, the mortgage interest rate is a key determining factor in what the home will cost you over the term of the loan.
Right now a 30 year fixed rate mortgage can be obtained for around 5% interest rate. This is very low, and half of what interest rates were just 10 years ago. If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall. On the other hand, if you are a first-time home buyer, it is in your best interests to purchase your home as soon as possible. The first-time home buyer tax credit will be expiring in June, and any increase in interest rates after the government’s exit from the mortgage industry in March will greatly affect your purchasing power.