What does this mean?
Well it means that if your waiting for prices to go down 10% or so before you buy, you should consider that when that happens the interest rates may be more than today's interst rates.
For example: If you buy a $300,000 home and wait til it goes for $270,000 (10% savings) and the interest rate jumps to 6.99% which is quite possible, you'll be paying approx. $516,600 over 30 years based on 20% down.
If you buy that home NOW at $300,000 at 5% interst rate, you'll be paying approx. $463,680 over 30 years based on 20% down.
In conclusion, you pay less for the $300,000 home now, than you will for the $270,000 home later.$463,680 for the home now and get to live in in now and save money, even prices go down.
Thus the theory, BUY NOW BEFORE PRICES GO DOWN !