Should you buy or not? It is a simple question when it comes to the current housing market, but a very hard one for many people to answer. Let’s look at one subject that may clarify things. 

The housing bubble burst like an atomic bomb going off. I don’t have to tell you that. Really cheap money created a real estate market that was so hot it made the sun sweat. It couldn’t last forever and it didn’t. When things turned around, they do so in such speedy fashion that the banking industry was nearly wiped out and we now live in what is known as the Great Recession. 

Fortunately, we seem to have moved past the state of fear that existed when things went to hell in a hand basket back in 2009. That isn’t to say things are a lot better, but we at least have some stability. The housing market has certainly stabilized, but will it begin to grow again here quickly? The answer is anyone’s guess, but it seems doubtful given the fact unemployment rates are still through the roof. In fact, many people are predicting a double dip when it comes to the housing market. 

All of this would seem to suggest that buying a home would be a foolish move, right? Well, not necessarily. There is one factor that makes buying a home a very good idea at the moment. That factor is the interest rate on a fixed mortgage. You can now pick up a 30 year mortgage on a home for an interest rate in the 4.5 percent range. That is shockingly low and one heck of a deal. 

Ah, but what happens if the housing market does go into a double dip? Well, so what? Yes, your home might lose value. Yes, you might even go upside down on it [owe more than it is worth], but this is all a paper loss. Do you really believe that home prices won’t recover and be growing again in five or ten years? 

If you don’t believe this is the end of the United States as we know it, then you have a marvelous opportunity in front of you. You can buy a home on the cheap right now that will grow in value like mad in the coming years once we are out of the Great Recession. And you can do it with a fixed 4.5 percent loan. That is a huge opportunity any way you cut it. 

Should you buy a home now? I can’t make that decision for you, but a review of the pivotal numbers suggest this could be a tremendous time to move into the market. 

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