No one can accurately predict whether rates will go up or down. Even those who follow the market for a living can't figure out when interest rates will bottom out. If they could, they would all be multi-millionaires. Waiting to time the market is a dangerous - and losing - game.

Also, home prices don't necessarily move in unison with interest rates. So, if you decided to roll the dice and wait to purchase a home, and the price were to actually drop $10,000 from where it is today, you could still end up losing money. How? If interest rates were to move up by a half-a-point during this period, the savings on the reduced home price would be more than offset by the higher monthly payment you would be making and the total amount you'd spend over the life of the loan.

In short, the smartest and safest time to buy is now. We know that interest rates are low today. We know that home prices are down. We know that there are plenty of homes on the market to choose from. We know that sellers are willing to bargain. And we know that builders are willing to offer attractive incentives to get your business.
*article found in Homebuyers Guide