Low interest rates are playing a vital role in keeping our market strong.

Mortgage rates are the biggest factor in determining how much one can afford, so when rates are as low as they are today, you and I have incredible buying power. How low are they? People who bought a home in 1963 were paying the same rate that’s available to us in 2011.

With recent dips in mortgage interest rates, housing is even more affordable. According to Freddie Mac, the average rate on 30-year fixed-rate mortgages fell below 5% to a four-month low. The 30-year, fixed-rate mortgage is averaging 4.94%. The 15-year average rate was 4.17%.

Lower interest rates = lower payments! The monthly payment on a $172,000 home with a 7% interest rate (a rate we saw for most of the 1990s) is $1,144. A 4.94% interest rate like we are seeing today will save you $227 a month on your mortgage! That's a savings of $2,724 a year - and almost $82,000 over the life of the loan.

Financing is readily available for those with a steady job history and suitable credit rating. Your lender can easily tell you at what interest rate you qualify. 

Buyers who are pre-approved by a lender before beginning their home search will have enviable negotiating power. You may be able to convince sellers to take even more off the listing price since they already know you can afford the home and don't have to wait until your loan is approved.