Since the election, rates have started going up and it will have a direct effect on the cost of housing. There is a rule of thumb that a ½% change in interest is approximately equal to 5% change in price.
As the interest rates go up it will cost you more to live in the very same home; or to keep the payment the same you’ll have to buy a lower priced home.
Before rates rise too much, now may be the best time to buy a home whether you’re going to use it for your principal residence or a rental property. The current low interest rates and house prices make real estate more affordable.
Source: InTouch
