Can Interest Rates Go Any Lower?

It seems that every six or eight weeks an article comes out in one of the various business papers stating that "interest rates have hit historic lows". Then the article goes on to talk about how now is a great time to buy because the rates are so low.

Fast forward a month or two and here we go again...new historic lows.

Today a report came out quoting 15 and 30 year rates at under 4.5%. Truth be told...this really is historic. But, is this why we buy a new home?

I am the first to admit that low interest rates allow the buyer to get more bang for his buck. But we don't decide to buy BECAUSE of the rates. We decide to buy because we are tired of paying rent, because our family is growing or contracting, because we have just retired or just been transferred. In all of these cases the interest rate is important but its not the motivating factor.

Lets stop talking about interest rates and spend more time talking about life style. About owning a place of your own, participating in the American Dream. Remember to buy with in your means and not over extend yourself with a property that you will struggle to pay off. And, don't forget that when a rate says its adjustable that means that it will be increasing over time and your monthly bill will get higher.

So, go and buy a new home, help the economy, create your own American Dream not because of the interest rates being low but because its the right time for you and your family.