If a person is waiting to "time" the bottom of the market before they purchase, it is highly unlikely that they'll identify it properly.  Once you can know for sure that the market has bottomed, it has started up again.  The other real probability is that if you are successful at predicting another 5% decline in price but the interest rates go up by 1%, any savings you might have enjoyed with the lower price will be lost and the monthly payment may even be higher.

If a $175,000 home goes down 5% in price to $166,250 but the interest rate goes up 1% to 6.25%, the payment is $55.27 more every month even though the mortgage amount is smaller.  The homeowner should be equally concerned with the payments unless they're going to pay cash which is generally not the case.

From Pat Zaby, Dallas, Texas. BTW, rates went up yesterday. Is it time for you to get off the fence?