By now, you have probably heard that mortgage rates are at an all time low!  This, in many cases, is very true.  Many companies are offering low rates which make it very appealing to home buyers in today's market.  According to the Federal Reserve Bank of New York, "Lower interest rates make it easier for people to borrow in order to buy cars and homes.  Purchases of homes, in turn, increase the demand for other items, such as furniture and appliances, thus providing an additional boost to the economy.  Lower interest rates mean that consumers spend less on interest costs, leaving them with more of their income to spend on goods and services.  If the rates that consumers and businesses have to pay to borrow rise too rapidly, however, spending may decline, leading to an economic slowdown."  (http://realtytimes.com)

In the 1980s, the interest rates on a 30-year fixed mortgage were up in the 16% range.  Today's average mortgage interest rate is at about 4.5%.  Lets put this in perspective for you.  If you were to borrow $100,000 with a 30 year fixed rate around 16%, your monthly payment would be around $1,400.  Now, if we were to borrow that same $100,000 at 4.5%, your new monthly payment is around $580.  That's a savings of $820.  If you looked at a $250,000 mortgage, the numbers are even more drastic.  The low interest rates coupled with the decrease in housing prices and the housing affordability index, provide tremendous buying opportunities out there.