[pig4bill]

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Jimbo, in your example you have to also take into account that prices may fall even lower if interest rates rise because that too changes the rent vs. buy calculation. So basically its a wash.

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Your payment MIGHT be a wash, but you will probably owe a lot less if you wait a year or two. If you have to sell or want to refi if rates drop again, the amount owed on the house will be lower. You'll net more cash in a sale and if you refi at a lower rate, your payment will drop.

For people that think prices are already low, I nearly bought a brand new house near Summerlin in the late 90's for a hundred grand.