My current home I bought about 7 years ago with a rate under 3%. I've been passively looking for our next home and rates have been in the high 2's to low 3's the whole time.

How much of an increase in rates would it take before it starts to impact home pricing, inventory and buyers in the market? I'm wondering if I am going to be looking at the same priced homes but just paying $300/month more due to rising rates or if there is a point where the prices begin to reflect that additional cost a buyer is taking on.

Cash out time baby, Let's wheel and deal. I love this market!!!!

the marginal cost of light rate hikes drive people wild Bott. Absolutely wild.


i've seen people freak out over .25 as if the extra 100 per month damaged their retirement plan.

SteveBott said:

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For reference. 300k loan

3.0% payment 1265
3.5% payment 1347

82 monthly difference. That won't turn the market upside down.

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Ya, its all proportionate to your price range. I guess I'm just amazed at how many people buy in the $600-$800K price range today and feel comfortable financially making that plunge. I'm just wishful thinking that the $300/month impact something like a 1.25-1.5% increase in rates could do would drive some of these people away.

Well 609k loan doubles the 82 cited. Still half of your example. 164 per month is not going to deter a 800k buyer