It isn’t necessarily better to buy during high interest rates if they are not going to go higher. I’m keeping that as one of my main criteria on timing my buy because I don’t want to see my 20%+ down payment evaporate because of a precipitous rate increase. If I had been able to buy in ’98 (in college) I wouldn’t worry at all while having lower rates and lots of equity in a fairly priced house.

Being that I will likely be buying in a down trending market I don’t want to be caught off guard by another variable and not have enough equity to get out in an emergency. Take my input for what you will since I don’t have data to back it but with all of the fraud and chicanery we’ve seen in the credit markets/banking industry it’s a given that at some point the game will be up and rates will soar because of it.

I’m hoping to buy in the SD North County coastal area in the next couple of years but I am willing to wait out for optimal timing even though the family is kind of crammed in a small coastal rental right now.