We all keep hearing the same thing, the market is going to slow or have a correction in the near future. While that may be true a complete market crash is not likely and prices will most likely hold steady or decrease slightly even as interest rates continue to climb.
We know rate will go up (it has to) but if you are waiting for the prices to drop you may be taking the wrong course. Take a look at our example below...
200K @ 4.5% = Payment of $1013*. Loan cost over 30 years $364,813
178K @ 5.5% = Payment of $1010*. Loan cost over 30 years $388,367 (21% drop in price to maintain similar payment)
Rate has everything to do with cost over time. This example assumes a price drop of 10% which is not likely...so in the end it waiting could cost you A LOT MORE!
Payment example of principal and interest only.
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