A deluge of discouraging news from rising mortgage interest rates to falling stock prices have economy watchers moaning that the recession is here and housing is going to get worse.

If you're a buyer waiting for mortgage interest rates to stay low, you bet on the wrong horse.

According to Realty Times' own David Reed, mortgage interest rates shot up this past week at the fastest pace in 20 years taking homebuyers and refinancing homeowners by surprise.

Just when things were beginning to look rosy for early spring housing sales, the bond market went south, and the yields went north. Mortgage interest rates are tied to the sale of mortgage bonds and mortgage-backed securities.

Homebuyers hearts weren't in it as mortgage applications sank over 22 percent (22.6 percent). Purchase applications fell 11.55 percent, and refinancings dipped nearly 28 percent (27.9 percent) during Valentine's week.

Translation? By waiting just one week to finance, you added $50 a month to your monthly mortgage payment thanks to higher interest rates.

Hindsight is 20-20 so you can see well enough to kick your own butt.

But don't despair. Just consider a little lesson in market timing. It doesn't work.

All you can do is watch the indicators and make your move when you think the most variables are in your favor.

For example, interest rates are higher, but if you move now, you could still take advantage of the higher conforming loan limits. FHA loans are 125 percent of your area's median price.

Now might be a very good time to buy a new home. The credit crunch is adding to builders desperation. They're finally realizing that they can't keep adding to stagnant inventories. New construction in January fell to a 17-year-low. They're slowing down on new single-family homes and accelerating starts on condos and apartments.

Both new and existing homes are at a nearly 10-month supply, so now's the time to negotiate better terms.

Keep in mind, there are only a few things that matter when you're buying a home: getting the home you want, at the price you want, at an affordable monthly payment. If you get all three, you've made a good deal.

The housing crunch won't last forever, and when it turns, think about where you want to be -- with first choice or the leftovers?

Published: February 22, 2008

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.