In today's real estate market, many buyers are saying "Let's wait until the prices go down more so we can get a better deal."  This is a frequent refrain in the Tampa Bay real estate market, especially after the red hot market of a couple years ago.  Well, that can be a poor business decision.  Currently, mortgage interest rates are at or near historic lows, and housing prices are at 10 years lows, making today's real estate market a great time to buy.  For the buyer who wants to save an extra 1% or 2% on the price of a home, they could be losing far more in the value of what they can get for their money.

Let's look at a few secnarios with purchase prices, monthly income, interest rates and some allowances for increased costs to maintain a home.

With a total monthly income of $4,000, the maximum mortgage for a home at 6% = $134,267; at 5.5% = $141,778; at 5% = $149,957.  The extra 1% in mortgage interest resulted in more than a 10% drop in value or more than $15,000 less house.

With a total monthly income of $6,000, the maximum mortgage for a home at 6% = $194,590; at 5.5% = $205,475; at 5% = $217,329.  The extra 1% in mortgage interest again resulted in more than a 10% drop in value, or almost $23,000 less house.

With a total monthly income of $10,000, the maximum mortgage for a home at 6% = $388,902; at 5.5% = $410,657; at 5% = $434,347.  The extra 1% in mortgage interest again resulted in about a 10% drop in value or more than $45,000 less house.

The numbers are what they are.  Mortgage interest rates can impact your home purchase and by waiting, even if the prices are dropping, if the interest rate rises it is entirely possible that the buyer gets less house for the same amount of money.  The moral is, when you find the right house, buy it.  Don't try to outsmart the market, especially if you are looking to buy a home in the Tampa Bay real estate market.  Although the market may not have hit bottom, prices are not likely to go down a whole lot more, and mortgage interest rates are very likely to begin to rise.