The notion that the mortgage market is in crisis is wrong.  Most of the mortgage products were unaffected by the sub-prime loans.  The interest rates for 30 year fixed loans or 15 year loans remain at historic lows in the low to mid 6% for most borrowers with good credit scores.  There is pleny of money out there.  The standards are stricter like, higher fico score requirements, income verification, more reserves, and more down payments may be required but this is how it was before the loose lending of these last few years.  it's back to normal these days.

Many buyers are waiting for the bottom to hit. Please take this into consideration.  The recent Federal Short term rate cut is for short term money, like credit cards, or equity lines of credit.  It has some effect on long term mortgage rates like the 30 year fixed rate, but in this case in the opposite direction.  Long term rates are at risk of rising. This is because many investors will look for better returns, like in Europe where the rates are higher, thus better for financial investors.  The effect will be that long term rates will need to rise in the US, to keep financial investors in this maket.  The last thing we want is money moving away from the US financial markets and slowing the economy. 
Let me show you why you should take advantage of good rates now and not wait for the real estate market to hit bottom.

For every quarter percent (0.25%) that the rate rises the equivalent price decrease is 2.5%. Whatever gains you think you may get by waiting may be wiped out by the rising interest rates.  So a 0.75% raise in the interest rates will be like an additional 7.5% drop in price. The rate increase is likely but the bottom of the real estate maket may be now.  If you wait, you may lose.

There are a lot of good real estate deals now which you can secure with really good interest rates.  Buy  low now.  The real estate prices are low and the interest rates are low.  This is relevant for investors just as it is for those that want a bigger or better home.  You may need to sell your current home for less, but you will be buying your better home for less and this larger mortgage will have a lower interest rate.  You win.

Call us for a consultation about your Phoenix real estate plans.