5 keys to buying a home in today's market

Trading up at a discount still possible

Interest rates dropped to new lows at the end of the first week in October. Thirty-year fixed-rate conforming loans were available in some areas with an interest rate of less than 4 percent. However, during the same week, mortgage applications dropped 4.3 percent, according to the Mortgage Bankers Association.

In past markets, low interest rates ignited the home-sale market. Not so today.