Originally Posted by lewdog
You have had many great posts in this thread. Very informative for some of us youngins.
From what I have read, the Feds plan to keep interest rates low until 2015. I am socking as much money into my savings account now, as I would prefer to also buy sooner rather than later with the low interest rates on mortgage loans. While 20% is the recommended, I am also thinking putting 10-15% down now with a lower interest rate could save more in the long run than waiting a few more years to gather 20% and chancing rising interest rates.
The Fed anticipates ZIRP (zero interest rate policy) through 2014.
I wouldn't bank on that though. If inflation starts to show up (unlikely before then as it has been nonexistent for the last couple of years and there is a lot of capacity out there), then they will start to raise.
But yes, all things considered you want the lowest interest rate possible. Locking in a low rate now on a long term loan (such as a mortgage) is ideal. That being said, if interest rates go up you may see a little price decline due to less purchasing power by buyers.