Owning a home which according to the dictionary definition is a building for human habitation is the American dream. Our present concept of a home goes well beyond that definition. Americans are looking for more than just a building to keep them warm and dry. We want more than a large four-walled building enclosure with rooms fit for eating, sleeping, entertaining, and recreating.

Our building must have separate rooms for specific purposes such as a kitchen for food preparation, a dining room for entertaining guests, and bedrooms and bathrooms for privacy. The basic concept of a house has been expanded to mean not only a building that provides shelter but a building conducive to the lifestyle we want to lead.

And that building can be many different things to different people. It could be a home in the mountains far away from civilization with a quarter of a mile driveway. It could be home on a golf course in a private gated community. Or it could be a cookie cutter home in a large subdivision with a community pool and a play area for children.

Of course the more elaborate the building, the more pricey the home but money is not object to some and other should be allowed to dream. The homes we live in seem to get larger and more expensive year after year. Of course a home has traditionally been seen as a great investment and with home values rising around the nation who could argue?

But recently inflation and recession have been affecting the housing market. The buildings we call homes have stopped increasing in value as quickly as they were in the past. The cost of building materials and labor has risen too so housing starts are down. Perhaps supply has finally caught up to demand.

Even the cost of money has affected the building of new homes and home sales in general. Mortgage rates have been at historical lows for nearly a decade leading to record numbers of home sales and refinances but inevitably the interest rates had to increase and it looks like they finally are heading north and that is yet another negative factor for the building and buying of homes.

Of course the building and sale of homes isn't about to come to a screeching halt by a long shot. But the torrid pace and record sales of homes and mortgage refinances looks like its reached the end of it current cycle and will level off in the near future if it hasn't already.

There are still bargains to be had and with demand slacking it may be possible to negotiate a lower price for the building of a home. But that's only a good option of you can afford the pay more for the money to buy it in the form of higher interest rates which translates into higher monthly payments.