Skip to main content

Can you afford to purchase if prices or interest rates rise?

Should one wait before buying a home in anticipation of lower housing prices and interest rates? Housing is cyclical, but it usually does not go backward for very long. The additional money saved now will probably not offset the potential appreciation or a potential rise in interest rates. If a $250,000 home appreciated 5 percent next year, you would net an extra $12,500 in after-tax savings and this doesn’t take into account additional tax savings from the mortgage interest deduction.

Leave a Reply

Your email address will not be published. Required fields are marked *