Over time, homes, like most things, get more expensive. If we are in the higher time of an interest rate cycle, affordability is even more challenging. The good thing about rates is that when they go down, you can refinance to a lower rate BUT you can’t re-buy your home at a lower price. It’s important to be financially and mentally prepared to purchase a home but because the longer you wait, usually the higher the price for the same home, it’s important to purchase a home sooner rather than later.
This spreadsheet will help you get a good understanding on how home-price appreciation and interest rates impacts pricing and affordability. As always, feel free to contact me if you have mortgage related questions or would like to get started on a pre-approval: (702) 812-1214, (801) 893-1737, or jed.wunderli@noblehomeloans.com.