Have you been sitting on the sidelines the past couple of years waiting for the housing bubble to deflate?

Are you tempted to take the plunge because prices have come down over the past couple of years and mortgage rates are near historic lows but you are still afraid to take the plunge?

Maybe you should think about the long term benefits of home ownership and the fact that you probably can afford a house you couldn’t afford a couple of years ago when prices were a lot higher and mortgage rates were also higher.

Don’t try to time a market bottom because you won’t be able to. Take advantage of the low mortgage rates and the $8,000 tax credit (if you qualify) for buying a home before December 1st, 2009.

Some housing markets have seen declines nearing 50 percent since the market peak. Even if you think housing prices have further to decline interest rates will probably be higher by the end of this year, making monthly mortgage costs higher, which will lower the price range of  homes you can afford.

Another benefit to home ownership is the tax benefits of owning compared to renting. Mortgage interest costs are tax deductible, further lowering your housing costs compared to renting.