With interest rates lower than they've been in over 40 years, it may be difficult to think of a window of opportunity closing. Consider this - rates will only go up from here. It may be a slow rise, but a steady one (the rise of home prices illustrates the same trend). Zillow recently reported results from a nationwide study that home values are expected to appreciate by 4.5% through the end of the year.
Coupled with Freddie Macs projection that rates are going up, the cost of housing for buyers by the end of the year will be higher than it is now. While the uncertainty of the future can stagnate some people, the fear of loss can be much more devastating when a person realizes that the amount they pay to live and enjoy a home could have been considerably lower had they acted when prices and mortgage rates were lower.
The following example considers a $250,000 purchase today with an FHA mortgage compared to what it might be at the end of the year with a higher price and interest rate as discussed earlier. The net effect is that it will cost $191.87 more per month to live in the very same home if you wait. To see what the cost might be for your price range, use this Cost of Waiting to Buy spreadsheet.