Mortgage rates have hit their highest levels in more than two and a half years. The 30-year mortgage now sits at 6.37%, with most analysts predicting that rates could hit 7.0 before the end of year.

Still, higher mortgage rates are having little effect on housing prices. While the supply of houses is rising, the price of homes is not declining.

So, when will prices drop? When will the real estate bubble burst?

Perhaps never, according to many followers of the real estate market. Price appreciation is cooling, but little price depreciation is occurring. Stabilization of prices, it seems, is the key buzzword in home values these days.

So, should you take advantage of low rates, or wait for prices to decline? Unfortunately, there is no clear answer to that question.