I suppose this is really my issue... the tradeoff between low interest rates and high home values... I'm having a tough time deciding if the difference between current interest rates and future interest rates is enough to push me into a relatively expensive market... Perhaps, in one years time interest rates remains relatively low, but home values descrease... and thus it would have been better to wait... On the other hand, if rates go up the same as the above example, but instead home values go up, then it was a bad idea to wait... I guess I'm trying to get a feel on the interplay so I can put myself in the best position possible.

1) At most it would be for 5 years. The idea being the location is great for being near the city, etc. but not for public school. 2) I'm sure it relative, but as compared to my peers I imagine I'm on the top end of liquidity... But this plays into my question regarding low interest rates. Essentially, because it's a cheap time to borrow money is it best to do so and stay liquid, i.e., not have to put more than necessary down and keep the cash for other investment purpose, rather than putting towards the home... As I write this, however, I realized I may have assumed incorrectly that you meant to use the cash for the home, but it may also be true that you mean its nice to have cash around for other purposes. If that's the case, then I agree that would be nice, but not quite sure how that ties in with low interest rates as it would seem that your point applies in both scenarios (high and low interest rates)... 3) This is the toughest one for me to answer. I don't expect to make money, especially in 5 years, but I don't want to put myself in a terrible position moving forward...

Pardon the ignorance... Young adult here looking for advice... Obviously its going to depend on the specifics, but are the prevailing low interest rates, reason enough to become a homeowner? Or because of the interplay between interest rates, inflation, and other economic factors, does it really matter? Thanks!