Key Advantages

First, mortgage rates are at near historic lows. We have data from Freddie Mac and BankRate.com's websites as a general indicator of the current mortgage market. The loan you may qualify for may or may not be at that percentage but both surveys are a good snapshot of rates. Compare the weekly survey rate to the chart of annual average rates for a fixed rate mortgage from Freddie Mac.

Key Advantages First, mortgage rates are at near historic lows. We have data from Freddie Mac and BankRate.com's websites as a general indicator of the current mortgage market. The loan you may qualify for may or may not be at that percentage but both surveys are a good snapshot of rates. Compare the weekly survey rate to the chart of annual average rates for a fixed rate mortgage from Freddie Mac.

Recent Changes to Conventional Loan Limits

One of the bright spots in the mortgage market is the increase in the loan limit for FHA, Fannie Mae and Freddie Mac loans. Prior to 2008, the limit for these loans was $417,000 or lower. The limits for Fannie Mae, Freddie Mac and FHA-underwritten loans have all temporarily increased to $506,000 for single-family homes. If you're buying a condo or multifamily property, the loan limit can be even higher.

So what does this really mean? The bottom line is some mortgages that would have been considered jumbo loans (typically with higher interest rates, bigger down payments and tougher qualifications) are now conventional loans. This means you have more options in terms of a house that you can afford. Always work closely with your lender to determine how big of a mortgage you qualify for and don’t overextend yourself.

It's a Buyers Market

In the Seattle area, we now have about a nine-month inventory of new homes available for sale. This compares to a year’s worth of inventory in Oregon, two years worth of inventory in Atlanta and a staggering four-year inventory in the hardest hit areas like California and Arizona. What this means is if you buy a home now and plan to stay in it for several years, that new home will increase in value and be a good investment.

These conditions make it a buyer’s market. Sellers are eager to deal and experts predict that buyers who wait, hoping for even lower prices, could end up paying more should interest rates rise. If the house you purchase costs less but your interest rate is higher, the interest rate you pay could wipe out any potential savings from that lower sales price.