Advice: BUY NOW or Possibly SUFFER!

Advice: BUY NOW or Possibly SUFFER!

Personally I'm tired of all the negativity on the news about how bad the real estate market is from all the narrow-minded so-called experts that have never been in the real estate business or sold a house as an licensed Realtor. Where do these pencil pushing, computer model analysis people get off saying this is not a good time to buy? Do they do ANY research on the history of home ownership cost and the effects of interest rates?

Let's put things in proper perspective.

Fact 1: When I entered the business in 1974 interest rates were 9% and rising
Fact 2: Interest rates rose for the next 8 years from 1974 to 1982 to a high of 14 3/4%
Fact 3: Interest rates remained above 9% until 1991, another 9 years later
Fact 4: That means interest rates were at or above 9% for 17 years

Current interest rates are in the 6.5% range. Below is a chart of estimated PITI payments (including the taxes and insurance estimates in my area) on a $200,000 FHA loan at the interest rates of 6.5%, 9%, 12% and 14%. With the market uncertainty in the banking system and interest rates, isn't it just as likely to repeat the mid 80's rate of 9% or more? Take a look at the interest you'd pay IN ONLY THE FIRST 15 YEARS OF A LOAN at the various rates. Do YOU want to "wait" and get caught with no choice but a 9% rate or even 14% rate for 15 years and pay $404,497 in interest versis only $172,663 now? What expert is going to guarantee you that rates will not hover 9% over the next 15 years?