From the KCM Blog:
We have often advised buyers to look at the COST of purchasing a house more than the PRICE of the home. Obviously, price is part of the cost equation. The other piece, assuming you are not an all cash buyer, is the mortgage rate. The mortgage rate to finance a purchase can have a dramatic impact on the overall cost. Recently, there are more people talking about the possibility that mortgage rates could begin to increase.
This is a great point… You won’t win by trying to time the housing market. Watching home values alone doesn’t take into account the potential cost differential (your monthly payment increase) if mortgage rates rise. [Read more...]