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Which is better: a cheaper home at higher mortgage rates or a more expensive home at lower rates.

People keep saying to wait until the housing bubble bursts and prices fall to buy into real estate.

However, the thing that will cause the housing prices to drop will be an increase in interest rates.

So even if housing prices fall, wont increasing interest rates eat away at any potential market price decrease? Because interest would be compounding over time and may outweigh any change in the real estate prices itself.

Or is it possible to get approved for a mortgage earlier and lock into a fixed rate and then buy a home a few months later when prices fall even lower?

I’m confused as to why waiting is better than buying right now while rates continue to increase it seems it is better to lock in at an over valued price with a lower mortgage rate in my opinion but why is this logic wrong?

submitted by /u/Sustainable_Coffee94
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/xobqig/which_is_better_a_cheaper_home_at_higher_mortgage/
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