I agree that buying during the ” frenzy” is not the best move if you are looking short term (some may have overpaid up to 10% or so), but in 10 years that difference will not leave you underwater and will most likely have been a better long run financial decision than buying at today’s/tomorrow’s higher rates(assuming buyer is financing the transaction).

I am in escrow now on a second “move-up” home and in hind sight would have gladly traded paying a little more during the “frenzy” so I could have taken advantage of the extremely favorable mortgage rates a few months back. However, I’m more concerned with carrying costs than overall principal (purchase price) as I plan to hold LT. I also prefer the “fixers” that don’t get caught up so much in the” frenzy” pricing.

Everyone is so concerned with a “bubble” and quickly appreciating prices. Anyone else believe that the price move we saw early this year was the adjustment needed to bring prices back to sustainable market levels after a post bubble over correction? From here, I project modest price increases (5% per year) coupled with interest rate increases over the foreseeable future.