Without going into to much detail, I’m going to explain in my opinion why right now is a great time to buy a home.

You have a combination of two things going on here:

1. Interest rates are still at a historic low. Here is a link compiled by Freddie Mac (Freddie Mac is one of the largest players that buys mortgages in the secondary market) showing the history of the 30 year fix rate. http://www.freddiemac.com/pmms/pmms30.htm

Today’s rates were around 5.5% on a 30 year fixed mortgage. As you can see from the link above that today’s rates are hovering around an all time low still. It’s really cheap to borrow money to buy a home. Keep in mind, the rate I mentioned above is only offered to those who qualify.

2. Home prices have dropped and are continuing to drop in some areas. Everyone that either owns a home or is in the market to buy a home knows about this. It’s a buyers market. Along with depreciated home prices, you have current owners that may be in a situation where they need to sell their home today! This gives you, the buyer, leverage to perhaps get a better price on the already low priced home. Keep in mind, the market will have it’s turn. When? I wish I had that crystal ball, but I can talk more about that in a future post. I just hate to see people wait to long to get the best of the best deal and then someone snatches up the home of their dreams.

With the combination of these two factors alone, buying a home at the present time is a great deal and investment for anyone.