"Am I in the right market condition to purchase a home?"

The basic question that every prospective buyer asks: "Am I in the right market condition to purchase a home?"

I started in the finance industry working for a large national bank and I've seen the real estate and mortgage markets change many times over.  So my answer to this question is, "Are you in the right financial condition to purchase a home?"

In first 6 months of 1994, when I just started my working career, the average mortgage rate at the time was 7.25%.  In Dec. 2001, my husband and I closed on our current house at around 7% for a 30 year fixed rate, which was the national average.  In Dec. 2002, we refinanced our house at 5% for a 15 year fixed rate, which was considered the historical low at the time. Afterwards, we saw the rate just kept dropping.  Did we make the right choice based on market condition?  Probably not, but we made financial choices that were good and right for us. 

As reported on The Dallas Morning News yesterday, under "Your Money" Section: Mortgage rates rose this week, Freddie Mac said in it's latest report, with lenders offering a 30-year fixed home loan to solid borrowers at an average of 4.57 percent - up from 4.51 percent last week and a full percentage point higher than a year ago. The average 15-year rate rose from 3.54 percent to 3.59 percent.

Our economy has gone through the recovery and the government says the economy is in the building phase.  Our GDP is up, auto sales are experiencing growth it hadn't seen for a long time,  and the unemployment rate has steadily dropped, so inevitably we will see interest rates rise again.  Still the current interest rate is very low compared to what my parents had to pay when they bought their house (around 9% in the late 80's).  Overall, we are in a very good economic period, so regardless of market condition, sit down with an experienced loan officer and go through your budget analysis.   It's not about the market, it's about investing in your future.  

Reference from The Dallas Morning News printed on Sept. 6, 2013. 
Reference from www.mortgage-x.com
http://www.mortgage-x.com/general/historical_rates.asp