With prices sliding for housing it may be hard for some to jump into housing market. I would not encourage anyone to impulse purchase a house even while contingent offers are locking up a lot of the Valley's well priced housing options. I would encourage a schooled approach based on the variables we understand today. Mortgage interest rates have been very low compared to most historical data points. We have seen rates jump in recent days and are not certain where they will go. So, if you are looking for homes, the rate increase is one thing you may want to consider strongly as those payments may offset what you think you will save by waiting. Go with what you know, not with what you hope will happen.

A further discussion of recent rates is offered by Bloomberg. Interestingly, the Fed may be in a "do nothing mode" as according to the article, "Bernanke and other Fed officials say the improved economic outlook and rising federal budget deficit are the catalysts for higher borrowing rates, and see no need to increase purchases of bonds." The essential meaning for us is that if the Fed does not keep purchasing MBS's, rates could continue higher. Based on the uncertaintanty the Fed is facing, I opt for looking for homes in the lower price ranges which we have seen cash flow as rentals and getting the deals done sooner rather than later.