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[–] 0 pt

If interest rates go up and the money supply tightens you may not be able to take advantage of prices going down and your monthly payment could stay the same. 190 mortgaged at 4.5% is the same as 160 mortgaged at 6%, 250 at 4.5 is the same as 210 at 6, and so on and so forth as sale prices and interest rates climb.

So yeah even if you had to borrow 300k to buy at the peak of pricing and the valley of interest, you're still better off than when rates hit 6 even if the price drops by 70k. The housing market finds its level based off the surrounding area's capacity to make the payments.

[–] 1 pt

I’m not really concerned with the interest rates—more the housing prices. I am looking to put at least 80% down and pay it off ASAP or buy outright.

[–] 0 pt

Sounds like you could take advantage of falling prices. Don't know what the bottom of the market adjustment will be if interest rates continue to rise but I kind of proved with math how if interest rates hit X level the prices have to drop to Y in order for the monthly payments to even out. Maybe try for 3-4 months after rates hit 6, which if the fed pushes another 5 hikes this year should happen by November so your target window is Feb-Mar 2023 plus or minus two weeks.

The real head's up is check to see what the government is doing with taxes, that could dry the market up real quick if you're not careful.

And absolutely don't rely on me for financial advice.

[–] 1 pt

Yeah, that is true. A rate hike drops housing prices, but this is a weird time to be an American. As far as taxes go, I am looking to buy a mid-sized condo in a suburb of like a 2nd tier city. It is something to consider, but not an immediate concern.