So, is this the time to buy a house?

[joebuck20]

My wife and I have been looking at houses for the past several months. We want to make a decision soon (within the next week or so) in order to meet the deadline for the tax credit.
But still, I'm pretty apprehensive about buying. My industry has been laying off a lot of people the past year. My wife has a part time job, but was unemployed for a year before that.
Personally I'd prefer to wait if I knew for sure they were going to extend the tax credit. I keep hearing that they are going to extend it, and it seems to be one of the few issues that Republicans and Democrats can genuinely agree on. But AFAICT there's been no official word from Washington yet.
Any thoughts on how to proceed?

[Mama Zappa]

Ya know, in your situation I'd say "no", given the uncertainty of your own job situation. That 8 grand tax credit is not going to count for a lot if you're stuck with a mortgage payment you can't afford on your savings.

Of course, only you know your finances, and the likelihood of your getting laid off in the next year or so. If you think they're OK, then in general now would be a great time - even without the tax credit, mortgage rates are terrific and housing prices have not yet rebounded by much (at least around here).

[Otanx]

In the general sense I think it is a great time to buy a house. Prices are down, free cash from Uncle Sam, low intrest rates. What more could you want? My wife and I are looking at places to buy, but will not be ready till Apr of next year. That is when we will have enough to buy outright instead of trying to get a mortgage with our strange income sources.

In your specific sense I would say probably not. As Mama Zappa said that 8K will not help when you get laid off, and can't make the payments. You say your industry is laying off, but how about your company itself? In particular your possition in the company? If you think you might get the chop then save, and wait. If you don't get laid off then you have that much more for a down payment. If you do get laid off then you dodged a big bullet.

-Otanx

[the first supraliminal]

Yes. The key is when rates are low. Don't worry about home prices, as interest will be the main cost of the property.