Mortgage applications at all-time low. But lack of demand has driven mortgage rates to an incredibly low level, at least for this writer, whose first mortgage in 1981 was 14.5%, and housing prices are now well below 2005 levels. So cheap mortgages, less expensive houses, it might make sense to buy something. Depending, of course, on how you read the market. I believe we’ll see increased interest rates in the future, but that will probably cause house prices to fall further. So what to do? My suggestion is to find a bargain that you like and buy it now, but stay away from houses priced as though 2007 is returning any time soon.