The front page of the Chronicle today reads "Mortgage experts: Record low rates could soon be gone" I so wanted to place a link to the article right here - but obviously what is in the paper is not necessary online. So I shall paraphrase....

"Mortgage rates are at historic lows, but that might not be the case much longer.  Those holding out ofr a bargain or wating to jump into the housing arket for other reasons could be in for a rude awakening.....Mortgage rates aren't expected to spike tomorrow.  But as the ecomony improves and if inflation begins to affect more segments of the economy, rates should start to tick up.  How much is anyone's guess."

What difference does an interest rate to you as a buyer?  As the article stated lets say you want a monthly mortgage payment of $1043.  If interest rates are at 4.75% this means you would have a loan amount of $200,000.  If interest rates are 7% the loan amount would be decreased to $157,000.  So in essence it will decrease your purchasing power and buyers may need to lower their price point and expectations as the rates rise. 

So what is the take away?  If you are truly just waiting for things to drop lower, now may be the time to pick up the phone and call me to show you a home!713.817.5710