Low Prices, Low Rates Mean Opportunity
Housing prices have fallen dramatically all over the country and rates on 30-year fixed-rate mortgages are already close to 5.5 percent. Experts say it’s possible, with government encouragement, that rates will fall as low as 4.5 percent.

Now is the time for first-time to step up. Here are some things to consider:

• Prices have always softened in the winter. As temperatures fall, bargain hunters will have bigger then usual opportunities.
• New homes likely to become scarce. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, said he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.
• Location. Location. Location. Buying the best-priced house in a really good neighborhood is still smart.
• Will values go up? You may have to live in a house for 10 years, but over time, buyers will almost certainly make money.

Source: The New York Times, Ron Lieber (12/05/2008)