As a first-time buyer, should I wait until prices go lower to buy a home?
No. If you continue to wait, you may never be able to afford to get into the housing market. Even as home prices are currently moderating - or even falling in some areas - rents continue to climb. The best way to build household wealth is to own a home. Once you become a homeowner, you are able to take advantage of the generous tax deductions that homeownership offers, and you begin to build equity in your property. With so many homes on the market to choose from, your best strategy may be to scale back expectations for your dream starter home. As your initial property builds in equity, you can use those gains to sell your starter home and move into a bigger house.

If I wait to buy a home, won't prices go down even lower?
Timing the market isn't a great idea. All the market fundamentals show that now is a good time to buy - prices are down, interest rates are affordable, there are lots of homes to choose from and you may be able to bargain with sellers. If you try to wait and time the market until it hits rock bottom, you are likely to lose out. Just as no one can accurately predict the peaks and valleys of the stock market, the same holds true for housing. If you sit on the fence and wait for the absolute best deal, you could end up literally waiting for years.

Is it better to wait until the economic picture is clearer so my house will appreciate?
No. The fact is, the economy is still solid. After expanding rapidly over the past few years, economic growth is moderating - and this is actually good for housing. Most economists predict that overall GDP growth will average about 2.5 percent for the rest of the year. That means that job growth will continue to move forward at a pace that should not trigger higher inflation or interest rates. This period of moderate economic growth, job creation and low inflation, coupled with a true buyer's market where there are plenty of homes to choose from, makes this an ideal time to purchase a new home.

Isn't it better to "play it safe" and keep renting until things are more certain?
No. The best way to "play it safe" is to actually buy a home. And here's why. Studies show that owning a home is the best way to builder household wealth. The sooner a person owns a home, the faster they begin to build up equity and wealth. When you buy a home, you are also purchasing price stability, knowing that you will pay the same monthly payment for the life of your 30-year mortgage. With fewer apartment rentals on the market and rents on the rise, renting lacks economic security, tax benefits and price appreciation. All of the economic fundamentals show that this a good time to buy a home and that there is upward pressure on rental apartments. The real risk isn't in buying a home, said NAHB, it's continuing to rent.

Should I invest my money in the stock market or use it to buy a home?
Buy a home! Thanks to the concept of "leveraging," purchasing a home is by far the best long-term investment. Leveraging means putting down a small amount of money to earn a big return. As a homeowner, your savings continue to grown in two ways. Every year, a greater portion of your monthly mortgage payment goes to principal, reducing the overall loan amount. Second, your home appreciates over time, making it one of the very best financial investments. Not only is homeownership a stepping stone to a future of financial security, it also helps build neighborhoods and strengthen communities. It is truly the cornerstone of the American way of life, and the fulfillment of the American dream.

Should I wait to buy a home until interest rates go down further?
No. Interest rates are still near historic lows and are extremely favorable for buyers. In fact, they are hovering near 30-year lows.