For Buyers who may be on the fence as to buying now or waiting until next year, here is a simple calculation that can help make your decision easier.  Let's say that your buyers are waiting for the prices of homes to drop another 5%.  Over the same time frame interest rates increase by 1%.  A simple example of why to buy now is as follows

• Purchase price today 200,000 at 5% interest gives a principal and interest payment of $1073.

• Waiting until the price drops 5% but the interest rate is 6% gives a principal and interest payment of $1139.

$66 per month may not seem like alot but it becomes almost $8000 after 10 years and $8000 is what every first time home buyer is trying to get.  It is just a simple math problem.