To quote John Paulson.....

In 2007, John Paulson raked in over $15 Billion betting against the housing market (shorting mortgage backed securities). You can read more about his exploits in "The Greatest Trade Ever" by Gregory Zuckerman or another great read is "The Big Short" by Michael Lewis. As you might expect the few who "saw it coming" are now considered visionaries and are sought out for their next prediction. So when John Paulson recently told a standing-room-only group at New York's University Club that now is the best time in 50 years to invest in real estate, people listened. He said to "lock in your debt and interest payments at record lows while the price of your home rises. If you don't own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third, and lend your relatives the money to buy a home."

Although we've seen some fluctuation, interest rates are at an all time low and can only go one direction from here. You can still get a 30 year fixed rate around 4.375% and 10/1 ARMS for as low as 3.75%. Jumbos are also becoming more available with rates floating around 5.5%. If you have not taken out a home loan lately, keep in mind that interest rates and qualifying hinge more on your personal financial position (like automobile financing), so be prepared for a little prequalification shock.