The popular press is full of advice for home-buyers. Some may be good, other may be based on markets in a certain city or area of the country. The advice is obviously free and and consists of "experts" looking at general situations. If we pay attention to this, do the expertsseem to agree on the circumstances in which one should, and should not, buy a home? what about the risks associated with a home purchase?

I recently taught a finance class where the author boldly stated that if you can afford the house, you should always purchase over rent.

I also have a friend who is a real estate broker who says "the best time to purchase a house is five years ago the second best time is today".

I am not sure I totally agree with either of these statements...do you?

Historically real estate prices seem to move counter to interest rates. This would indicate that buyers are very sensitive to the amount of the monthly payment.

Some information that may be helpful includes;what was the average interest rate charged on 30-year fixed-rate residential mortgages last week?

What was the average 15-year fixed rate?

What was the one-year ARM rate?

For the purposes of this current event; As a potential home buyer, or if a friend comes to you to discuss the pros and cons of them purchasing a home in the next few months, how do you engage in this conversation? (for the purposes of this discussion "I don't know, it's your call" or refusing to engage is not an option) As we are nearing the end of the class you have some level of understanding of real estate. Assuming payments are manageable; so it is affordable, Keep in mind the inflation rates and the announcement by the FED that interest rates will likely increase 3 or 4 times next year. Given current trends and future projections; How do we navigate our entry into the homeowner market for the near term? What about the longer term? Why?

If you already own your home, evaluate this assignment as "is this the time to upsize or downsize"? I do own my home