Generally, the answer is 'No'−though there are exceptions to that rule. The first thing you should consider when timing the purchase of a residence is your own needs. When do you need that home? Probably the sooner the better.

The fact about timing a purchase based on interest rates is that rates are very hard to call−and they're only part of the picture. As homes are appreciating, the benefits of waiting for a time when (and if) rates decline fade away as home prices rise and time passes in which you've not had the benefit of owning an appreciating home and deducting many of the expenses of ownership on your tax return.

The issue, bottom line, isn't so much how low your interest rate is. It's how well the financing works for you. If you can't afford a home, then you won't buy it. If you can, you will nearly always be wise to buy−if the home truly fits your present needs and your future plans.

Trying to get the lowest possible rate on a loan can sometimes blind you to the fact that you may not be getting the best possible−and, over the long haul−least expensive loan. A 7-year hybrid ARM, for example, may work far better for you than a 30-year fixed-rate-mortgage. The best approach is to assess your needs, and then study the mortgage market carefully... and with a very open mind. For answers to all your real estate questions call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.