Benchmark mortgage rates were just announced as being reduced to approximately 4.84%. This is the LOWEST rate since May, and over one percent lower than it was a year ago. This has created a double digit percentage increase in mortgage applications, as well. If a potential buyer has good credit, and if the house comps out, it means that today's buyer can get a LOT MORE HOUSE for a MUCH LOWER MONTHLY PAYMENT.
The Fed has given indications that they do not intend imminently to raise rates, but most economists believe that by the second quarter of 2010, there is a probably that interest rates will begin to move up. All of this is complicated by the decrease in the value of the dollar related to foreign currencies, the uncertain energy situation, the rise in the price of gold (which means that many believe inflation is next), the uncertain job market (becaause even though many believe recession has bottomed or near-bottomed, the jobless rate is still startling, and is lagging behind dramatically).
Therefore, if you have savings, can afford 20% down, have good credit, and decent job security, this may be the best home buying market in quite a long time - - - past, present or future.
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