If you are FHA-financed and get an offer accepted by the end of next week, you could get your new home in time to still capture the $8,000 tax credit. The deadline is the end of the month if you are conventional.

However, it’s going to be tough!

Here are some reasons why you should not despair if you do not make it in time.

1) Interest Rates are Even Lower. According to Bloomberg News, interest rates are below 5% now. If you are not new to real estate, you probably can’t believe this. Interest rates 7 years ago were over 7%. Interest rates in 1981 were over 15%. If you are new to home buying you might just shrug, but you shouldn’t.

Compare a loan at 7% with a loan at 5%. On a $100,000 house your monthly principle and interest at 7% is about $665. At 5% it is about $552. That $113 per month savings equals $1,356. You would match the $8,000 tax credit savings in 5.8 years.

You don’t get the tax credit right away, but you will still save tens of thousands of dollars over the life of the loan!

2) Prices May Change after the Tax Credit Goes Away. We don’t know by how much, but prices may change after the incentive of the $8,000 tax credit goes away. With many people leaving the market and the holidays coming up, the market will slow and prices will come down. It slows during the holidays, anyway. But this is a double-whammy. People buying this holiday season could come up with a really incredible deal, just in time for Christmas.

Helluva stocking stuffer, huh?