My wife and I have been looking to move into a single-family home from a townhome. We put a bid on a house, but it dosen't look like it is going to work out because the sellers want a quick settlement (which we can't afford to do) and will not budge much on the price. I'm starting to think now about whether it really is a good time to buy a house. Interest rates are so low and our present home has appreciated in value a good deal over the past few years, but so have the homes we are looking at. Do homes go down in value when interest rates go up? For example, a home was worth $100,000 when you bought it and $200,000 now. Interest rates were at 9.5% then and 5.0% now. If the rates go back up to say around 8% does the value of the home go down to around $150,000? Its going to be a huge purchase and I'm just worried about being burned down the road by not knowing all the facts!