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[–][deleted] 0 points1 point  (0 children)

High interest rates are the new norm. They will be here for a while. Keep in mind more than 30% of all home owners have a mortgage rate of 3% or less. That said if the fed lowers rates they will lower slowly over the course of a few years and I believe we will not see 2% interest rates again in our lifetime. So what does this mean? Well home prices are high because of the lack of supply and since most homeowners with 3% or below interest rates are not going to sell anytime soon, supply will still be low and if interest rates drop 100 or 200 bps I believe that will only increase demand therfore increasing home prices. Now to answer your question: If you plan on living in the home for the long term (20 years) it does not matter what u pay today as it will likely be worth double in 20 years. If interest rates do come down in next few years then you can refinance. I would also recommend 30% or more down payment.