The nature of home loan interest rates has changed completely from the old days.
No longer can we count on level interest rates that will stay within a point or so year after year. It appears that interest rates will be subject to economic activity and volatility either on the way up or on the way down with a little hesitation and the tip of each wave.

One thing most experts cannot predict is exactly where interest rates will be a year from now. There are just too many uncontrolled variables such as economic activity here and abroad, employment and inflation which affect the direction of interest rates.

So, when is it best to buy a home – when rates are going up or down? The answer is to buy when you have to and want to buy. The reason- Home prices and interest rates work in tandem. They tend to neutralize each other’s directions. When interest rates go up, more homes are available and home prices tend to level off or go down. When interest rates go down, more buyers qualify for loans, demand increases, fewer homes are available and prices inevitably increase. However, there are situations where prices have stabilized throughout the area.