If you watched CNBC today you likely heard "Bond Guru" Bill Gross comment on interest rates.  His prediction is that rates will continue to fall, likely as low as 4%’s.  1% reduction in rate is the equivalent of a $10,000 reduction in price.  So homes will be slightly more affordable.  The big question is whether buyers who are taking advantage of the market will wait after hearing this news.

The bottomline should require you to ask these questions:

1. Why am I moving?
2. What is my motivation for moving? (yes ask it again)
3. Why do I NEED to buy?

If you are buying investment property then there might be a reason to pause.  If you are renting, you should have already bought something.

Here’s more from the interview:

"The mortgage rate will come down another 50 to 100 basis points," Pimco’s founder and chief investment officer said. "That’s basically what the government needs. They need a 4 1/2 percent to 5 percent 30-year rate in order to support home prices and, yes, to encourage refinancing and the process of reliquification within the economy. "

His advice: "[OWNERS] Don’t refinance yet. "

Purchasers on the other hand should move forward, especially, first time home buyers who should take advantage of the $7,500 Tax Credit while it lasts.

Some time next year, he sees stabilization coming to the economy, and lower mortgage rates are an essential part of that process.

If you are watching the news you are drinking up the fear… from a Water Hose.  My journey to NO FEAR this week has taken me down steps and I don’t think I can be concise about it, but I do want to share with you my journey.

• I had my first reading of Who Moved My Cheese and everything everyone says about this book is true. It really forced me to wake up and realize, I’m "hemming and hawing" and not really …
• Shift - ing - Gary Keller of Keller Williams just released his new book, Shift .   In it he describes how the real estate market has shifted and what you have to do to be successful in a shift.  Short story… back to basics - and by basics, it’s being effecient and creative… but more importantly changing and having…
• NO FEAR - Many of you know I’m a Christian.  I am not the best example but I do read THE WORD and I was listening to Pastor Dennis Rouse talk about Fear and the economy.  As many people are away, there are cycles of life and this too will pass.

II Timothy 1:7 For God has not given us a spirit of fear, but of power and of love and of a sound mind.

I don’t know about you but I’m not about to succumb to a spirit of fear.

All of these changes got me on the road of POWER and I noticed that "SHIFTING" is BIblical as well.

Revelation 3:1-6 (paraphrase)

“Wake up! Stop just doing the same things you have always done and change how you think and how you live!”

When faced with a challenge, we can either adopt (quit), abdicate (become bitter), or adapt (overcome).

The "trials" we are going through are expected, whether it is David, Jesus or Peter or basically EVERYONE in the Bible, they all went through trials.  Change is important in surviving, but the one thing that will work everytime is:

FOCUS ON HIM

But seek first his kingdom and his righteousness, and all these things will be given to you as well. Matthew 6:33

I liken it to driving a car.  When I’m in the ditch or riding on the median, I’m literally tearing the wheel away from Jesus, when my life feels like I’m in the HOV lane, it’s because I’M THE PASSENGER .

As we go through this tough time, just keep your eyes on HIM.  The Bible says he speaks in a "still, soft voice."  If you are having a hard time hearing him, it might be because you have the "World’s" volume up to loud.  Try going without TV for a week and see if your perspective changes.

I’ll be back on topic next time, but if one person gets encouraged, then the time spent writing this is worth it.  Let me know.  Drop me an e-mail or comment!

Are you waiting till prices drop further?  I have two KEY questions for you.

1. When is the right time to buy?
2. When do you know where the bottom is?