I live in Los Angeles and I'm buying a home about 40 miles East of LA in Chino. The community is new and the home is brand new, but everyone says right now is a bad time to buy.

I'm buying the home for a great price: originally 422,000 cut down to 370K with all costs paid for by the builder.

I'm anticipating staying in this home for about 7-10 years.

What do you think about buying a home like this right now and what do you think about the housing market over all currently?
Mortgage Details:

100% loan:

75% of it is a 10 year fixed for 5.37%. After 10 years it becomes an ARM at 1+Prime or something like that.

25% of it is a 7 year fixed for 9.125. After 7 years it becomes an ARM as well.

Both have no prepayment penalties and we can refinance either at any time. We plan on refinancing the second one after a year or so to something a little bit better if possible.