There has hardly ever been a better time to buy a house.

So many buyers in our market are seeing the increase in home prices and are worried that it’s not even affordable to buy a house anymore. Actually, the home’s price is just one factor of how much it costs to own a home on a monthly basis. The other major factor is the mortgage interest rate. Because of the low mortgage interest rates that we’re experiencing right now, it’s actually more affordable on a monthly basis to buy a home today than it has been for most of history.

There are only two years in the last 45 years when it’s been less expensive to buy a home than it is today.

The chart at 1:24 in the video above will help explain what I’m talking about. Going back to 1975, mortgages have been increasing significantly over the years, but mortgage rates have been fluctuating quite a bit. They’re significantly lower in 2021 than they were back in 1975 or 1985 when they surpassed 12%.

If you look at the principal and interest chart, you’ll see that there have only been two years in the last 45 where it’s been less expensive to buy a home than it is today, and that’s simply because of these incredibly low mortgage rates. Back in 2020, it was less expensive to own a home on a monthly basis because we had low rates, but home prices also hadn’t escalated like they have in the last year. We were also coming out of the Great Recession, which led to a lot of foreclosures and short sales that caused home prices to drop drastically. That, in turn, made it much more affordable to buy a home.

The bottom line is this: If you’re thinking about buying a home and you’re worried about high home prices, reach out to me. I can connect you with a really great lender who will be able to give you information about what rates are currently like and what that means for your monthly budget. I hope to hear from you soon!