Good Timing: Buy Real Estate Now

We all heard the bubble burst. The rise in interest rates caused the over-heated housing market to cool, and for sky-high real estate prices to stagnate or drop. But now it appears that the worst is behind us. It looks like the Federal Reserve is holding off on any more rate hikes, which is good news for people waiting to buy a dream home, or refinance their mortgage rates.

Even though the mortgage market is becoming friendlier, you should be careful not to wait too long to take advantage of the current competitive rates. Here's why:

What goes down must come up

When it comes to a cooling market, you can't predict when the bottom will hit. Waiting for mortgage rates and home prices to go lower and lower is a gambler's gambit. This can really hurt you if you get greedy and hold out for an extra 1/8 of an interest point. People who follow this tactic can easily wind up getting burned if rates suddenly spike.

Wake up to your dream home

If the weak market had you renting or staying put in your current home, you may want to take action soon. With home prices still high, an influx of renters has bumped up the cost of leasing an apartment. As a renter, you may soon be losing money on payments that could otherwise be building up home equity. As a homeowner, it might be time to act now. As the market starts to heat up, you can beat the rush and avoid the excessive inventory that comes with favorable markets.

When it comes to making the jump to a dream home, you need to determine when the time is right for your particular financial situation. Do the current rates and prices of today's homes fit within your overall budget? If so, then this might be the moment to make a move and make that dream a reality.