1.”If it’s possible that prices will continue to fall, why should I buy now?”

Here’s an answer from Broker Pam Ermen…The truth is, IT IS DIFFICULT to outrun the interest rate if you choose to define your entire home buying decision by whether home prices will continue to fall  Here’s a great rule of thumb…a 1% increase in the interest rate is equal to a 10% loss in buying power!  As stated by REALTOR.org, price is normally the major concern when selling a home, while cost is often the main concern when purchasing one. So, if you’re deciding whether to buy now, you should take into account what your monthly payment will be, considering not only the price of the home but also the interest rate of your mortgage. Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of the mortgage. Fannie Mae, Freddie Mac, the NATIONAL ASSOCIATION OF REALTORS®, PMI, and the National Mortgage Bankers Association are all that projecting interest rates will increase over the next several quarters. Consider talking to a Regional Home Mortgage Loan Officer  to help you determine what an interest rate increase might cost you if you continue to sit on the fence!