A real financial opportunity

Perhaps the first myth that needs shattering about today's real estate market is that interest rates are high and need to come back down to make a new home purchase viable. Nothing could be further from the truth. Rates are, in fact, comparable to 40-year lows nationwide, according to the National Association of Realtors; comfortably close to their record lows of only a year or two ago. Click here for the current rate information from Bankrate.com.

Plus the more mortgage companies find it necessary to compete - and they really are competing in today's market - the more their efforts will continue to keep mortgage rates as low as is economically feasible.

So waiting today for the market to become even more favorable tomorrow - hoping for lower interest rates and lower prices - could cost you thousands of dollars.

Even a half-point rise in mortgage interest rates would be significant. On a 30-year fixed loan of $200,000 at 6.5%, an increase to 7% would cost almost $24,000 over the life of the loan. (See for yourself by clicking here and using our mortgage calculator.) Balance that against the off chance that the home price itself may go down. It would have to go down more than 10% to compensate for even that slight interest rate increase.

In short, it could be a monumental mistake to predicate your buying decision based on what you think might happen with mortgage interest rates. Even industry insiders can't make those predictions with any certainty. Odds are pretty good that you'll be even less successful than they are.

You're better off buying a home now, taking advantage of very favorable market conditions, and starting out right away to build equity and realize the tax benefits of homeownership.

8 signs you are ready to buy your first home

With home prices cooling off and apartment rents heating up, is now the time to buy your own place? Here are the ways to know when it makes sense financially to purchase your first home.