While this may be a great time for a home purchase, the climate is not ideal for mortgage rates. The boom in real estate has changed directions, and what was an unprecedented seller's market has quickly turned to the advantage of buyers. At the same time, consumers, accustomed to cheap mortgage loans, are searching more diligently for low mortgage quotes to help with their home purchase.

Economic impact on mortgage rates

If you're planning to buy a home, the seasonal cycles of the economy and subsequent adjustments in mortgage rates should not be the overriding criteria for choosing whether or not it's the right time. These things are beyond your control. But realizing your own dreams is not. First and foremost, decide on whether a home purchase is the right choice for you now. Then consider mortgage rates, sales figures, and other details as secondary information to help you reach your main objective.

For most Americans, a home purchase is a smart investment, because it represents a chance for personal and financial security. Home ownership also provides substantial perks, such as tax deductions and the opportunity for equity asset appreciation. Make your decision based upon those kinds of benefits, not on the national economic outlook. Your quality of life need not wait for Wall Street pundits to predict the next bull or bear market. Besides, half the time their forecasts are wrong, anyway.

Mortgage rates at historic lows

Keep in mind that while mortgage rates have gone up, they are still near historic lows. If you use a long-term fixed-rate loan, you have a chance to lock in an attractive rate to protect you from future interest rate inflation. Ask your lender to explain your options, and then choose a mortgage loan that offers monthly payments appropriate to your budget, as well as a comfortable level of future predictability. Then, shop for your home, knowing that it will provide you with years of pleasure, regardless of what interest rates and real estate prices do over the near term.