As per the market sentiment as of today with the USD crashing to new lows, the consensus is that the Fed may lower the Fed funds by as much as 50 basis pts. Wait until Sept 18th for the FOMC meeting and the interest rate release. You'd know exactly where the economy's heading then. Also, a decrease in a mere 50 basis pts on your mortgage on a decent 1 family in NY (650K = approx $140 per month). So I'd advise you to wait until next week. BTW, What I say to all my friends is that the right time to buy is definitely not now. Wait to see prices being depressed a little further until about the end of this year as the sub-prime mess is still not over. Its still a buyer's market out there and until congress bails out the ones stuck under the sub-prime fiasco or changes the current strict regulations for obtaing a mortgage, this definitely won't change.